HMRC has published a consultation document on possible options for redesigning the VAT Retail Export Scheme, also known as Tax Free Shopping, for comment by 30 September 2013.

The scheme allows non-European Union visitors to claim a refund of VAT on goods they buy and export from the European Union (EU) in their personal luggage. HMRC aims to make the scheme easier to use and understand, and to limit opportunities for error and fraud.

This consultation applies to retailers and refund companies using the VAT Retail Export Scheme, as well as overseas visitors and individuals who make claims for VAT refunds under the scheme.

It seeks views on the main options for improving the scheme in the UK, which include: customer experience improvement measures such as removing the need for foreign visitors to carry their passports/ identification documents around busy shopping centres; revenue protection measures such as tightening the rules on retailers issuing blank or duplicate claim forms; introducing a digital tax-free shopping scheme to replace the current paper-based system; and introducing a minimum threshold for the Retail Export Scheme.

Implementation of certain options - in particular, the potential for introducing a digital tax free shopping scheme - will depend upon there being a sufficiently good case for any investment and views will be sought about how this might be achieved.

More details are available from Gov.uk HERE