VAT Retail Export Scheme ending

[Cotswold Eagle]

There was a reference in another thread to the UK’s VAT Retail Export scheme, which allows for refunds of VAT to be arranged at the airport  on goods purchased in the UK and being exported in luggage to non-EU countries.  
 

The scheme is being abolished at the end of this year as part of a tax- and duty-free shopping shake up as the United Kingdom leaves EU arrangements. Tax free sales of things like electronics and clothing at airports are also being abolished. 
 

Goods can still be bought VAT-free if exported direct to an overseas address, but will of course be subject to local taxes on entry to the country concerned (although I am sure all CC members would declare goods in luggage too). 
 

https://www.gov.uk/government/news/duty-free-extended-to-the-eu-from-january-2021
 

VAT Retail Export Scheme

As part of these changes, VAT refunds for overseas visitors in British shops will be removed. Overseas visitors will still be able to buy items VAT-free in store and have them sent direct to their overseas addresses, while the costly system of claiming VAT refunds on items they take home in their luggage will be ended.

[markeb]

That's unfortunate.For the US, your personal exemption requires you to carry the item with you, so no duty on the first $800 per person, essentially, combinable for a family. The duty on most items shipped really isn't that much anyway, but now you'd have to figure in shipping, etc., and you'd probably only really look at larger businesses that already have international shipping. Kind of kills Travelex and Global Blue in the UK!

 

It's going to be interesting to see how this whole process impacts sales of EU items (clothing, shoes, cosmetics, etc.) that had been good buys in London the last couple of years (at least for US travelers). Bond Street could look different...

 

As long as you can still buy whisky at Heathrow!

[Hlitner]

When we first started visiting England (over thirty years ago) we would buy some decent British goods such as Burberry.  But we soon realized that most of what we purchased in England (Duty Free) were actually about the same price at home!  This was also true for Irish goods (we have a nice little Irish shop in a nearby town).   The truth is that we seldom save enough money on shopping in Europe to justify the hassle.  Gibraltar used to be the exception, but even that is not what it used to be as far as bargains.

 

What has changed everything is the Internet!  Shopping on the Internet here in the USA will often get us better prices on most high end goods then we can find in Europe.  Asia is a different story :).

 

Hank