Why The U-Turn on the VAT Retail Export Scheme Is A Mistake by Tamara Cincik

Yesterday @jeremyhuntmp as Chancellor of the Exchequer announced a u-turn on the decision by the previous Chancellor Kwasi Kwarteng MP, last month to reinstate the VAT Retail Export Scheme (VAT RES) for tourists shopping in the UK. The government estimates that this will bring £2bn into the UK economy. Fashion Roundtable would dispute that analysis, since it does not address the higher numbers of global consumers now shopping elsewhere, nor the dual nationality UK passport holders who are choosing to shop and claim VAT back from the EU while travelling.

The VAT RES allowed the UK to be the number one European destination for global tourists looking to purchase fashion items and reclaim their tax. This was stopped when the UK left the EU and currently Paris, not London is their tax-free tourist destination of choice.

Revoking this decision is going to prove unpopular with fashion businesses, hospitality and the tourism industries.

Alongside many organisations, @fashionroundtable supporting the reinstating of the VAT RES, please check our website to read why and what it means, not only for luxury brands, but also for workers across the UK in many struggling sectors.