Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of introducing a new tax-free shopping incentive for international visitors.

Tax-free shopping continues to be available for all non-UK visitors who purchase items in store if they have them sent directly to their overseas address. This also applies to overseas shoppers who buy from British businesses online and have items delivered to their overseas address.

The independent Office of Budget Responsibility published their assessment of the withdrawal of the previous VAT-free shopping schemes in November 2020. At the time, this showed that the withdrawal of VAT-free shopping would raise a significant amount of revenue and have a limited effect on decisions to visit, or spend, in Great Britain.

The government is accepting representations from industry on VAT-free shopping and considering these, alongside broader data.