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Treasury Update
11 September 2020
Type
Written Ministerial Statement
Department
Treasury
At a Glance
Issue Summary
The government is announcing new rules for excise duty and VAT treatment of goods carried across borders by passengers travelling to and from Great Britain starting January 1, 2021.
Action Requested
The government will make a Statutory Instrument subject to the negative procedure before the House of Commons to implement these changes. Passengers will be able to purchase duty-free excise goods when traveling from GB to EU destinations but must declare and pay taxes for goods brought into GB from EU countries according to new personal allowances. Airside tax-free sales will be withdrawn, and VAT refunds for overseas visitors will no longer be available.
Key Facts
- The changes apply from January 1, 2021.
- Passengers can purchase duty-free excise goods on international routes.
- Personal allowances increase significantly for alcohol brought into GB.
- Tax-free sales under the airside extra statutory concession will be withdrawn across the UK from January 1, 2021.
- The VAT Retail Export Scheme will be withdrawn for non-EU visitors and not extended to EU visitors.
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