VAT news and archive

West End retailers miss out on 220 million pounds due to 'tourist tax'

It is no secret by now that retailers across London remain unhappy about the UK government’s decision to scrap tax-free shopping incentives for tourists. The resulting impact of the move was further emphasised in a new report by the New West End Company (NWEC), which represents the retail landscape for the West End district of London. In its...

Business

UK ‘tourist tax’ reportedly costing 11.1 billion pounds in lost GDP

A new report by the Centre for Economics and Business Research (Cebr) has said that the UK’s widely debated ‘tourist tax’ is costing the region’s economy 11.1 billion pounds in lost gross domestic product (GDP). Cebr said that it had used tourist data released by the government last week to analyse the impact of scrapping the VAT-free shopping...

Retail

Tourist tax harmful to the UK, says retail Landlord

In Westminster Hall last week, Members of Parliament convened to discuss tax-free shopping for international visitors. The debate has sparked a wide range of opinions amongst the UK’s retailers, with the majority advocating for aVAT-free shopping scheme to attract foreign visitors and remain competitive against other European destinations. Hugh...

RetailFeatured

UK sees 750 million pound loss due to tourist tax impact on Chinese tourists

The absence of spending by Chinese shoppers due to the tourist tax is taking a toll on the UK, costing the nation an estimated 750 million pounds annually. A recent report from the Association of International Retail (AIR) has corroborated what many businesses have been emphasizing for months: high-spending Chinese tourists are now choosing to...

BusinessFeatured

Without tax free shopping UK is least attractive shopping destination says Burberry chief

Burberry chair Gerry Murphy has accused UK Prime Minister Rishi Sunak of making a grave mistake in removing the VAT refund for foreign shoppers, claiming that it has made the UK the least attractive shopping destination in Europe. Mr Murphy alluded that tourists can shop tax-free in other cities such as Paris, Milan, and Amsterdam, making the UK...

RetailFeatured

International sellers who do not pay VAT banned from online marketplaces

International sellers on UK marketplaces including Amazon and eBay are being banned following a crackdown on non-payment of tax. According to the BBC, thousands of international sellers have failed to pay the correct VAT on items sold online in the UK. Sellers, who aim to sell goods ranging from beauty and fashion to household items, have been...

Business

Pakistan proposes no VAT on textiles

In order to boost its growing textile sector, Pakistan's commerce ministry has promised to do away with value added tax (VAT) for textiles and make it zero from July 1 2016. Federal commerce minister Khurram Dastgir Khan made the announcement at the 15th Textile Asia 2016 exhibition, an international B2B textile and machinery show, which took...

Retail

Airport retailers fail to pass on duty free to consumers

Airport shopping used to be a pre-holiday pleasure, but UK retailers are facing calls to be more honest with airport customers as they collect millions of pounds in VAT discounts on duty-free items without passing on the savings. Many stores in airports across the UK now demand that passengers present their boarding cards at checkouts before...

Fashion

Littlewoods awarded 1.2 billion pounds tax refund

Littlewoods, part of the multi-brand retail group owned by the billionaire Barclay brothers, has been awarded a 1.2 billion pounds tax refund, after a landmark High Court ruling sided with the home shopping retailer during a long running legal dispute concerning interest on overpaid VAT. On Friday, judge Justice Henderson ruled that the claims...

Design

Should online retailers pay tax?

Should online retailers get tax credits? The UK government has been told that a tax on online retailers would represent a “barrier to entrepreneurship” by the founders of Sofa.com. The British Retail Consortium is investigating the possibility of an online tax to create a more level playing field between internet retailers and brick-and-mortar...

Design

Zara will not increase prices despite VAT hike

Zara owner Inditex has announced it will absorb the VAT (value-added tax) increase in Spain, instead of passing the cost onto its customers. The increase will mean consumers shopping at Zara will not see a difference in its prices. The Spanish government announced a VAT increase from 18% to 21%. With this decision, Inditex will maintain its...

Fashion

January sales rise a unique factor

Reacting to the figures published last week by the Office for National Statistics (ONS) the BRC said the 6.4 per cent annual increase in the total value of sales is strong but distorted by factors unique to January. British Retail Consortium Director General Stephen Robertson said: "Superficially, these are strong figures but they don't indicate...