In a breakthrough for the UK’s aviation industry, the UK Government is re-introducing tax-free shopping for international visitors.
Chancellor Kwasi Kwarteng announced the move in his ‘mini budget’ statement to the House of Commons on 23 September.
In addition to VAT-free shopping for non-UK visitors, Kwarteng added that plans are afoot to “replace the old paper-based system with a modern, digital one and this will be in place as soon as possible. This is a priority for our great British retailers, so it is our priority too.”
The VAT refund is expected to cover goods purchased on the High Street and includes airside shopping post-security at airports and other departure points of sale.
Speaking on behalf of Airport Operators Association (AOA) members, Karen Dee, Chief Executive of the association said: “We are pleased that the government has listened and reintroduced VAT free shopping for international visitors. The imposition of VAT placed our airports at a significant competitive disadvantage compared to our European neighbours and its reintroduction will provide a real boost to our aviation, travel and tourism industry as we continue to rebuild from the impacts of the pandemic.”
Dee added that the government must now go further and act on arrivals duty free in the upcoming Budget.
“The renewed focus on infrastructure projects, creation of investment zones and broader fiscal measures are welcome and must be used to support the recovery of UK airports and place our aviation industry back at the heart of the UK economy,” she concluded.
