The Treasury has published its responses and policy decisions on the post-transition period regime for duty-free and tax-free goods carried by passengers across borders. This follows consultation with the industry which closed on 20 May 2020. From January 2021:
- duty-free shopping will be extended to include EU countries;
- tax-free sales in airports of goods, such as electronics and clothing, for passengers travelling to non-EU countries will end;
- VAT refunds for overseas visitors in British shops will be removed. Overseas visitors will still be able to buy items VAT-free in store and have them sent direct to their overseas addresses.
Regulations will be laid before the House of Commons to give effect to these changes.
