Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Brexit business taskforce, if he will take steps to ensure that retailers can recover VAT that they have paid in the country of destination when goods are returned for refund.

Retailers in Great Britain who sell goods to customers in other countries should normally zero-rate the sale of those goods for UK VAT purposes. Where import VAT is due on arrival in the destination country, the recipient in that country is responsible for paying that import VAT and then recovering it, if the goods are subsequently returned.

Where the retailer in Great Britain is registered for VAT in the destination country, the retailer can account for the VAT, including VAT adjustments for returned goods, through the VAT return process in that country.