Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of reintroducing the VAT Retail Export Scheme for international visitors to the UK.

Reintroducing the VAT Retail Export Scheme (or VAT RES) would not directly benefit the British public but would allow tourists who buy items in the UK to claim back VAT as they return home.

The independent OBR published its assessment of the withdrawal of VAT RES in 2020, which supported the Government’s assertion that the withdrawal of the scheme would raise a significant amount of revenue and have a net positive fiscal impact.

This costing is only part of the evidence Government has considered, which included a consultation on the withdrawal of the previous scheme that attracted a range of views.

However, the Government keeps all taxes under review, and the Chancellor has invited evidence to inform its policymaking on this issue to ensure that the Government has the latest data on the impact of the removal of VAT RES.