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Chamber and committees

Motion ref. S5M-22948

VAT Retail Export Scheme

Submitted by: Daniel Johnson, Edinburgh Southern, Scottish Labour.
Date lodged: Monday, October 5, 2020

Supported by: Alex Neil
Current status: Has not yet achieved cross-party support

That the Parliament expresses its alarm at the decision to end the VAT Retail Export Scheme, commonly known as tax-free shopping, at the end of 2020, it understands without any assessment of the direct and wider impact on the retail, hospitality and tourism sectors in Edinburgh and across Scotland; notes that visitors to Edinburgh and Scotland from international destinations such as China, the United States and other countries make a valuable contribution to the economy, including through the purchase of iconic Scottish goods and holidaying here; believes that the UK would be the only country in Europe not to operate tax-free shopping if the scheme ends; acknowledges that the Scottish Retail Consortium, Scottish Tourism Alliance, the Essential Edinburgh business improvement district and others have voiced their concerns regarding the end of tax-free shopping, and calls on UK Ministers to reconsider or postpone the ending of this tax relief until a full impact assessment is undertaken and discussions are held with the industry on possible alternative solutions.