Thread by @edwinhayward

(THREAD)
A whole host of new rules on VAT and duty-free are coming in on 1 January 2021 after the Brexit transition period ends.

The UK Government held a consultation, and the changes are weaved into the summary.

assets.publishing.service.gov.uk/government/upl…

- Passengers going to the EU will be able to buy duty-free alcohol and tobacco products like they can now for non-EU destinations.
- But they will no longer be allowed to bring in unlimited amounts of goods from the EU for personal use. Instead, there will be specific limits.

- The government is getting rid of tax-free sales to all destinations (that will hit retailers in airports, like Dixons) - they had to do that because WTO rules demand equal treatment for all countries, so it was either that or extend tax-free sales to EU destinations.

- The government is getting rid of the ability of non-EU visitors to get VAT refunds on stuff they carry home with them. This will make the UK less attractive as a shopping destination for well-heeled foreigners. (Instead, they have to have the products sent overseas by stores!)

Summary: some positives, some negatives - but as a whole, the negatives outweigh the positives. We lose tax-free shopping in UK airports, and tourists lose cheaper products. We can no longer bring unlimited amounts of stuff back from the EU. But we gain duty-free booze to the EU.

Of course, since alcohol is more expensive in the UK than almost anywhere else in Europe, it's hard to see how many people will be queueing up to load up on alcohol before heading overseas. More than they do now, I mean.

If you're a consumer, the new rules will take getting used to, especially the limited personal allowance for "everything else".

If you're a business, especially an airport retailer, the changes could be devastating.

Thanks, Brexit!

/END