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<p>The Government has announced that the VAT Retail Export Scheme will not be extended
to EU visitors, and will be withdrawn for all non-EU visitors, following the end of
the transition period. However, retailers will continue to be able to offer VAT-free
shopping to non-EU visitors who purchase items in store and have them sent direct
to their overseas addresses and this will be available to EU visitors following the
end of the transition period.</p><p> </p><p>The detailed rationale for this change
is included in the written ministerial statement and summary of responses to the recent
consultation: <a href="https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448"
target="_blank">https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448</a>
and <a href="https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers"
target="_blank">https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers</a>.</p><p>
</p><p>The Government recognises the challenge these businesses face. The Chancellor
announced the Winter Economy Plan on 24 September. This includes an extension to the
temporary 5 per cent reduced rate of VAT on goods and services supplied by the tourism
and hospitality sectors from 12 January to 31 March 2021. This alone provides continued
support for the cash flow and viability of over 150,000 businesses and protection
for 2.4 million jobs in the tourism and hospitality sectors. The Plan also provides
further support to businesses and jobs over the coming months.</p>
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