Overview:
- The government announced in September 2020 that from January 2021, duty free purchases will be extended to British passengers travelling to EU countries.
- However, tax-free sales in airports of some goods – such as electronics and clothing – will end for passengers travelling to non-EU countries. Such a change could mean that the UK is the only country in Europe not offering tax-free shopping.[1]
- If this change is implemented at the end of the transition period, this could cost UK residents who fly to non-EU countries an extra £12.1 million in tax each year.
- The impact of the change could also lower UK GDP by over £2 billion and lead to 19,400 job losses.[2]
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Sources:
[1] Shepard, R., Analysis: What could the end of duty-free mean for retail?, Retail Week, 12 October 2020, www.retail-week.com/luxury/analysis-what-could-the-end-of-duty-free-mean-for-retail/7035953.article?authent=1, (accessed 14 October 2020).
[2] Pentol, A., Ending tax free sales to ‘cost UK economy £2.1bn in GDP’, says report, TRBusiness, 28 September 2020, www.trbusiness.com/regional-news/international/ending-tax-free-sales-to-cost-uk-economy-2-1-billion-in-gdp-says-report/196244, (accessed 14 October 2020).