Following our previous client alert discussing the UK government’s announcement that the VAT Retail Export Scheme will be withdrawn in Great Britain from 1 January 2021, the Chair of the Treasury Select Committee has written to the Chancellor of the Exchequer asking for a cost benefit analysis for the decision.
The Treasury Select Committee heard evidence about how the withdrawal of the scheme could adversely affect the UK Retail and Tourism sectors at a time when they are still feeling the effects of the COVID-19 pandemic. In this alert, we discuss some of the issues raised by the Committee and some of the factors that sit behind the policy rationale for withdrawing the scheme.
We are already working with a number of retailers to assess and mitigate the impact that this change presents for them. Please do not hesitate to contact Tim Jarvis, Tax Partner and Matthew Lewis, Head of Retail, to discuss this further.