UK opposition seeks to axe VAT on shopping for overseas visitors
A future Conservative government will restore VAT refunds for overseas visitors in an attempt to lure high-spending tourists back to Britain’s struggling high streets. London has been hit by a drop in spending, particularly among wealthy shoppers from the Arabian Gulf since the tax was imposed in the UK in 2021, unlike other major European cities popular with shoppers and tourists, such as Paris…
The UK opposition, led by the Conservatives, is proposing to restore VAT refunds for overseas visitors in an effort to boost tourism and shopping in Britain. This policy shift comes in response to a decline in spending by wealthy Gulf tourists since the introduction of VAT in 2021, as London has struggled to compete with other European cities like Paris and Milan.
If implemented, the scheme could generate £4.1 billion in additional spending, attract 2.35 million extra visitors annually, and support over 150,000 jobs. The Conservatives estimate the annual cost of £540 million could be offset by measures such as cracking down on NHS tourism and more consistent charging of non-entitled overseas patients.
This proposal has garnered support from major retailers and tourism businesses, who argue that Britain is the only major European shopping destination that denies international visitors a tax refund.
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