VAT: Repayments
The question
To ask the Chancellor of the Exchequer, if she will (a) reinstate VAT-free shopping for visitors and (b) allow VAT refunds on departure.
Answered by James Murray
The Government has no plans to introduce a new tax-free shopping scheme in Great Britain.
According to the OBR, the withdrawal of the VAT Retail Export Scheme will save the Exchequer around £540 million per year by 2025-26.
Recent ONS data shows that UK tourism numbers and spending has recovered at a similar rate following the pandemic to other European economies.
The Government has considered analysis supporting the introduction of a new tax-free shopping scheme and found that there is insufficient evidence that a new scheme would have greater benefits to the UK than costs.
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