ICAEW.com works better with JavaScript enabled.


Growth Plan 2022: VAT-free shopping re-introduced to Great Britain


Published: 27 Sep 2022 Update History

Scheme returns allowing overseas visitors to claim back the VAT paid on purchases of goods taken home in their personal baggage.
17 October update

On 17 October, the new Chancellor of The Exchequer, Jeremy Hunt, brought forward a number of measures from the late October Medium-Term Fiscal Plan. These reversed most of the changes that had been announced by his predecessor, Kwasi Kwarteng, on 23 September.

Since the UK left the EU at the end of 2020, VAT-free shopping has only been available in Northern Ireland.

As part of its plan for growth, the government has committed to reintroducing a VAT-free shopping scheme to Great Britain. This would enable non-UK visitors to Great Britain to obtain a VAT refund on goods bought in the high street, airports and other departure points and exported from the UK in their personal baggage. The proposal is intended to provide a boost to the high street and create jobs in the retail and tourism sectors.

The scheme currently operating in Northern Ireland is largely paper based. The new scheme for Great Britain will be digital and the Northern Ireland scheme will be modernised. A consultation will gather views on the approach and design of the scheme, which the government says will be delivered “as soon as possible”.

It remains to be seen whether HMRC will be given additional resource to urgently build another new digital system while also working on projects such as MTD ITSA and the Single Trade Window.

Tax Faculty

This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty

More from the Tax Faculty

Latest news
Making tax digital image

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter

Practical guidance

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.