Commons Sense

House of Commons · Ministers' Questions

VAT Exemption for International Visitors

Tuesday 7 May 2024 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Government are considering the findings of the OBR review of VAT-free shopping alongside broader data and industry submissions.
  • Met Heathrow last week to hear representations regarding VAT-free shopping.
  • Challenge is assessing forecast changes and potential costs of 2.5 billion from a worldwide scheme.

Topics (select to filter)

Questions & Answers

Q1 Andrew Rosindell Reform Romford
Taxation
Context

The question arises from a review by the Office for Budget Responsibility of VAT-free shopping, following industry representations and data on retail spend.

Question

Whether he plans to reintroduce VAT-free shopping for international visitors. The Government are considering the findings of the OBR review of VAT-free shopping alongside broader data and industry submissions. Will the Minister provide a definitive plan?

Answer from Nigel Huddleston

The Government are considering the findings of the OBR review of VAT-free shopping alongside broader data and industry submissions. We continue to welcome further submissions and representations in response to those findings.

Partly answered

Not addressed: Specific plan or commitment to reintroduce VAT-free shopping was not provided

How: We Continue To Welcome Further Submissions

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q2 Andrew Rosindell Reform Romford
Taxation Transport Business & Trade
Context

Data from Heathrow airport shows that despite near-full recovery in passenger volumes post-lockdown, retail spend on affected goods remains 32% below pre-pandemic levels. The industry is calling for VAT-free shopping or similar incentives.

Question

Data from Heathrow shows a 32% decline in retail spend on affected goods despite full recovery of passenger volumes post lockdown. Heathrow and many businesses are urging the Government to reintroduce VAT-free shopping or similar incentives. Will the Minister acknowledge these figures, listen to industry demands and reinstate this popular policy?

Answer from Nigel Huddleston

Met Heathrow last week to hear representations. The challenge is assessing forecast changes and potential costs of £2.5 billion from a worldwide scheme, considering deadweight cost and behavioural change assumptions.

Partly answered

Not addressed: Specific commitment or plan to reinstate VAT-free shopping was not provided

How: The Challenge Is Assessing Forecast Changes

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email