UK mini-budget 2022 - VAT
Introduction of VAT-free shopping for non-UK visitors to Great Britain
The government will introduce a modern, digital, VAT-free shopping scheme for non-UK overseas visitors. Prior to Brexit, the VAT retail export scheme (RES) allowed non-EU visitors to the EU to recover the VAT on purchases they made on the high street which they took home with them in their luggage. This scheme was withdrawn in Great Britain after Brexit i.e. from 1 January 2021. Retailers in Northern Ireland, including those at ports or airports, were still able to offer VAT RES to non-EU visitors to Northern Ireland, under the terms of the Northern Ireland Protocol.
Based on the Chancellor’s announcement today, retailers in Great Britain will be able to offer VAT free shopping under a modern, digital, VAT-free shopping scheme, to non-UK visitors. The aim is to provide a boost to the high street and create jobs in the retail and tourism sectors. A consultation will gather views on the approach and design of the scheme.
