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Exports: VAT

Question for Treasury

UIN 84347, tabled on 2 September 2020

To ask the Chancellor of the Exchequer, what activities the HMRC Policy Lab has undertaken in its research on the digitalisation of the VAT Retail Export Scheme; and which companies and organisations they have (a) met and (b) observed as part of that research.

Answered on

11 September 2020

The HMRC Policy Lab carried out site visits, observed processes and conducted interviews and surveys in relation to the VAT Retail Export Scheme. This involved a wide variety of stakeholders including Border Force, retailers, VAT refund providers, refund agents, airport operators and shoppers. This research took place in parallel with a consultation on tax-free and duty-free goods.

After reviewing the long-term approach to tax-free goods as part of that consultation, the Government announced today that the VAT Retail Export Scheme would be withdrawn from 1 January 2021 and would therefore not be digitised or extended to EU residents.

Answered by

Treasury