Retailers of luxury goods, particularly in tourist hot spots, will be delighted that the chancellor Kwasi Kwarteng has reversed the post-Brexit legislation that ended VAT rebates for shoppers from overseas.
In his pro-growth financial statement today, the instant VAT rebates that visitors could claim on departure from airports were restored.
“The government will introduce a modern, digital, VAT-free shopping scheme with the aim of providing a boost to the high street and creating jobs in the retail and tourism sectors,” the Treasury says.
The VAT rebate scheme, axed as part of the Brexit legislation, was wildly unpopular with luxury watch retailers.
Watches of Switzerland and others funded a lobbying campaign trying to get it reversed.
VAT rebates will not return immediately, but are promised after a consultation period.
“A consultation will gather views on the approach and design of the scheme, to be delivered as soon as possible. The new VAT-free shopping scheme for non-UK visitors to Great Britain will enable them to obtain a VAT refund on goods bought in the high street, airports and other departure points and exported from the UK in their personal baggage,” the Treasury promises.
