Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the value of spending by international visitors on goods and services other than tax-free shopping in the UK; and what proportion of that spending is forecast to be retained in the UK after the VAT retail export scheme is withdrawn.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government has announced that the VAT Retail Export Scheme will not be extended to EU visitors, and will be withdrawn for all non-EU visitors, following the end of the transition period. However, retailers will continue to be able to offer VAT-free shopping to non-EU visitors who purchase items in store and have them sent direct to their overseas addresses and this will be available to EU visitors following the end of the transition period.
The final costing will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.
The Government recognises the challenge these businesses face. The Chancellor announced the Winter Economy Plan on 24 September. This includes an extension to the temporary 5 per cent reduced rate of VAT on goods and services supplied by the tourism and hospitality sectors from 12 January to 31 March 2021. This alone provides continued support for the cash flow and viability of over 150,000 businesses and protection for 2.4 million jobs in the tourism and hospitality sectors. The Plan also provides further support to businesses and jobs over the coming months.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what formula is used by Valuation Office Agency assessors to determine rateable value.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Rateable Value (RV) of any non-domestic property represents the annual rent a property would achieve if let on the open market at a valuation date which is set in law. For the current RVs, effective from 1 April 2017, the set valuation date is 1 April 2015.
The VOA uses a hierarchy of internationally recognised valuation approaches for assessing RV:
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many organisations responded to HMRC's consultation entitled VAT Retail Export Scheme: Improvements, which closed on 6 September 2019; and when the outcome of that consultation will be published.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HM Revenue and Customs have been exploring the scope to modernise the VAT Retail Export Scheme and invited stakeholder feedback on emerging proposals. Twenty-three organisations responded to HMRC’s letter entitled VAT Retail Export Scheme: Improvements. HMRC have no plans to publish a summary of the responses.Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure a level playing field on tax free shopping between UK and EU retailers in relation to UK consumers after the UK leaves the EU.
Answered by Jesse Norman - Shadow Leader of the House of Commons
During the transitional period there will be no change to tax-free shopping arrangements in the UK. As with all aspects of the tax system, the Government will keep this under review.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress the Government has made in digitalising fully the Retail Export Scheme to reduce the administrative burden to travellers, as announced in the Autumn Statement 2016, and what the timetable is for that digitalisation to be delivered.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC are continuing to build on the work undertaken following the announcement at Autumn Statement 2016 about plans to modernise the VAT Retail Export Scheme (RES).
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether UK citizens will be entitled to shop tax free in EU member states at the end of the transition period on 31 January 2020.
Answered by Jesse Norman - Shadow Leader of the House of Commons
During the transitional period which ends on 31 December 2020, there will be no change to the VAT Retail Export Scheme and so UK citizens will not be eligible to use this scheme. How the scheme will operate after the transitional period will depend on the outcome of negotiations on the UK’s future relationship with the EU.