Question to the HM Treasury:

To ask the Chancellor of the Exchequer, which international comparisons HMRC drew upon in designing the schemes it uses to recover VAT on goods imported into the UK.

VAT on goods imported to the UK is recoverable by the owners of the goods, via their VAT return, where they are VAT registered and the goods are intended for use in making taxable supplies. Details of this can be found in Revenue and Customs Briefs 2 (2019) and 15 (2020) at www.gov.uk/government/publications, and the approach is in line with international norms.

HMRC also use the overseas refund scheme to refund import VAT to overseas businesses importing goods into the UK. This scheme is the equivalent of the mechanism used in the EU to refund VAT to businesses that are outside the EU.