British spending on EU VAT-free shopping soars fivefold as UK policy faces backlash

"British consumers spent £742 million on VAT-free goods in the EU in 2024, reflecting a fivefold increase since the UK abolished tax-free shopping for visitors."

"The decision to remove VAT-free shopping for foreign visitors has led to a significant increase in British spending in European countries, highlighting economic shifts post-Brexit."

"More than 500 leaders from the retail and hospitality sectors have called for the reinstatement of VAT-free shopping to enhance the UK’s competitiveness."

"Reintroducing VAT-free shopping is projected to boost the UK economy by £3.65 billion annually and create 73,000 new jobs."

British shoppers are turning to Europe for VAT-free shopping, spending £742 million in 2024, a fivefold increase since the UK's 2021 abolition of tax-free shopping. Spending continues to rise into 2025, with a 16% increase in early 2024. Retailers warn this trend undermines the UK's competitiveness. Over 500 industry leaders support calls to reinstate VAT-free shopping, arguing it could enhance the UK economy significantly. Reintroducing the scheme could generate £3.65 billion in GDP and over 73,000 new jobs, boosting regional growth and tax revenue.

Read at Business Matters