Written evidence submitted by HM Treasury
- On 23 September 2022 the Chancellor announced that the Government will introduce a modern, digital, VAT-free shopping scheme for overseas visitors, which will be available both on the high-street and for airports and other departure points.
- This new scheme will be more effective than the previous scheme as an incentive for overseas visitors to come to Great Britain and spend money, boosting our high streets and creating jobs for those working in the travel retail sectors.
- A new scheme for all non-UK residents to shop VAT-free on the high-street and at airports and other departure points is estimated to cost around £2 billion per year to VAT revenue but could stimulate additional retail spending of around £2.0 billion - £2.5 billion.