No More Tax Free Shopping in the UK

[Princess Fiona]

The UK has announced the end of Duty Free shopping and VAT refunds for tourists effective January 2021.
Airport stores will be able to sell booze and fa_s duty free to everyone regardless of destination, all other goods can’t be sold duty free.
Queue massive exit of Chinese to buy up in Paris and the likely closure of most retail except booze and fa_s at LHR.

Executive Traveller

Optimistically titled info from the UK Gov website

UK Gov

 

[Hvr]

So where will airports get the revenue lost from all of those duty free shops?

 

[RooFlyer]

So where will airports get the revenue lost from all of those duty free shops?

They'll probably just do the straightforward thing and put a barrier up where the D/F used to be with a sign "10 pounds to pass this point from every passenger"

 

[VPS]

You would think the UK government has better things to be worried about at the moment FFS

 

[MEL_Traveller]

Importantly:

VAT Retail Export Scheme​

As part of these changes, VAT refunds for overseas visitors in British shops will be removed. Overseas visitors will still be able to buy items VAT-free in store and have them sent direct to their overseas addresses, while the costly system of claiming VAT refunds on items they take home in their luggage will be ended.​

You can still buy VAT free in the high street and have it sent directly home. I think this is actually a big benefit... the queues for VAT refunds at UK airports were long, and there was a huge cut being taken by Travelex to process the VAT refund.

Often UK retailers will have a 'free international postage' deal going during sales times.

 

[OZDUCK]

Importantly:

VAT Retail Export Scheme​

As part of these changes, VAT refunds for overseas visitors in British shops will be removed. Overseas visitors will still be able to buy items VAT-free in store and have them sent direct to their overseas addresses, while the costly system of claiming VAT refunds on items they take home in their luggage will be ended.​

You can still buy VAT free in the high street and have it sent directly home. I think this is actually a big benefit... the queues for VAT refunds at UK airports were long, and there was a huge cut being taken by Travelex to process the VAT refund.

Often UK retailers will have a 'free international postage' deal going during sales times.

Don't forget if you have it mailed to Australia you will get no "Duty Free Allowance" on those goods when they arrive here. So at the very minimum you will be paying 10% GST on most items.

 

[Brissy1]

So where will airports get the revenue lost from all of those duty free shops?

Car parking

 

[Princess Fiona]

Importantly:

VAT Retail Export Scheme​

As part of these changes, VAT refunds for overseas visitors in British shops will be removed. Overseas visitors will still be able to buy items VAT-free in store and have them sent direct to their overseas addresses, while the costly system of claiming VAT refunds on items they take home in their luggage will be ended.​

You can still buy VAT free in the high street and have it sent directly home. I think this is actually a big benefit... the queues for VAT refunds at UK airports were long, and there was a huge cut being taken by Travelex to process the VAT refund.

Often UK retailers will have a 'free international postage' deal going during sales times.

I don’t think that’s any great benefit. You’ll get slugged with GST on everything and import tax if over $1000.
The existing arrangements are far better for travellers.

 

[MEL_Traveller]

I don’t think that’s any great benefit. You’ll get slugged with GST on everything and import tax if over $1000.
The existing arrangements are far better for travellers.

OZDUCK makes a good point that I had not factored in!

On the typical goods I buy - low value of £200 or less per item, it pretty much comes out a wash between travelex or paying the GST for Australia.

 

[TheRealTMA]

It's an interesting development that's really long overdue. The airport duty free shops in UK were well known for not passing on the VAT savings to the government and the VAT redemption scheme, both in UK and general in Europe, IMHO actually has been a ripoff for many years where one only receives something like 40-50% of the tax paid. The rest goes on "administration" costs.

 

[OZDUCK]

OZDUCK makes a good point that I had not factored in!

On the typical goods I buy - low value of £200 or less per item, it pretty much comes out a wash between travelex or paying the GST for Australia.

And just in case you had forgotten, the cost of any postage would also subject to GST.

 

[TheRealTMA]

And just in case you had forgotten, the cost of any postage would also subject to GST.

If one imports wine by the case, where one usually does not get VAT relief, the WET tax is applied to the full cost of the wine (well, declared customs value) then GST is applied. Although buying Scotch whisky in Australia is marginally cheaper from Dan's etc then buying direct from distillery or shops in UK.

 

[VPS]

I want to be able to buy stuff from here without the ridiculous shipping costs

Buy Whisky, Single Malt and Fine Spirits Online | Master of Malt

With next day delivery on over 16,000 of the finest Single Malt Scotch Whisky, Bourbon, Rum, Gin, Tequila and more… we’re the world’s #1 Whisky Shop.

www.masterofmalt.com

 

[TheRealTMA]

I want to be able to buy stuff from here without the ridiculous shipping costs

Buy Whisky, Single Malt and Fine Spirits Online | Master of Malt

With next day delivery on over 16,000 of the finest Single Malt Scotch Whisky, Bourbon, Rum, Gin, Tequila and more… we’re the world’s #1 Whisky Shop.

www.masterofmalt.com

The Highland Park “Sigurd” we bought at airport in Edinburgh on way to orkney last year for nephew’s partner, then hand carried for three weeks till we got home, turned out to be $40 cheaper if we had bought it from Dan’s or Nick’s.

 

[VPS]

Compare and contrast

Sainsbury's online Grocery Shopping and Fresh Food Delivery 25 quid - about $44

https://www.danmurphys.com.au/produ...0204/jawbox-belfast-cut-classic-dry-gin-700ml $84.90

 

[TheRealTMA]

Compare and contrast

Sainsbury's online Grocery Shopping and Fresh Food Delivery 25 quid - about $44

https://www.danmurphys.com.au/produ...0204/jawbox-belfast-cut-classic-dry-gin-700ml $84.90

Buy Australian gin!

 

[Princess Fiona]

It's an interesting development that's really long overdue. The airport duty free shops in UK were well known for not passing on the VAT savings to the government and the VAT redemption scheme, both in UK and general in Europe, IMHO actually has been a ripoff for many years where one only receives something like 40-50% of the tax paid. The rest goes on "administration" costs.

Nope not for me. The retailers I buy from in LHR sell their goods ex-VAT. It’s a 17% discount and depending on the exchange rate (not flash at the minute admittedly) it’s a significant discount on many items especially jewelry, bags, clothing.