The letter, co-signed by 20 leading figures in the retail and travel sectors, calls for the reinstatement of this VAT relief, which was abolished in all parts of the UK except Northern Ireland when the UK left the EU’s VAT system on 1 January 2021. 

Before Brexit, the UK operated the VAT Retail Export Scheme, which allowed participating retailers to make a post export refund of VAT to customers on goods when the customer exported them to a non-EU destination.

RSM partner Peter Williams said: ‘To the surprise of many who had expected the scheme to be modified to include exports to the EU, the government instead decided to scrap these VAT refunds for overseas visitors.

‘VAT now has to be paid on all purchases unless the customer arranges to have the goods delivered directly from the UK retailer directly to an overseas address. At the same time, the government also decided to limit duty free sales at ports and airports to alcohol and tobacco products, with ‘tax-free’ sales of other goods such as electronics and clothing being withdrawn.’

The a