Drapers

Zoe Hu and Sabina Weston

The government announced plans last month to consult on introducing a new tax-free shopping scheme for Great Britain, and said it would modernise the one in place in Northern Ireland. The government abolished the VAT Retail Export Scheme (RES) on 31 December 2020, when the Brexit transition period ended, arguing that it offered little benefit to many parts of the UK and was inconsistent with international norms.

Paul Barnes, chief executive of the Association of International Retail, agreed: “The decision to reverse plans to reintroduce VAT free shopping for international visitors will come as a hammer blow to UK tourism and the British high street. This short-sighted move is based on inaccurate and incomplete projections, and risks putting a brake on the return of international visitors who are vital drivers of economic growth throughout the UK. 

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