Government should support UK fashion industry by bringing back ‘tax-free’ shopping VAT relief
The new government should recognise the fashion industry’s contributions to the UK economy and bring back ‘tax free’ shopping VAT relief for tourists, say leading audit, tax and business advisory firm, Blick Rothenberg.
Gabby Donald, a corporate tax partner at the firm, said: “London Fashion Week celebrated its 40th birthday this year, and in turn the UK government should celebrate the fashion industry by supporting its growth.”
She added: “Research by Oxford Economics, commissioned by the UK Fashion and Textile Association shows that the UK fashion and textile industry contributes £62bn to the UK economy, supporting 1 in every 25 jobs in the UK and raising more than £23bn in tax revenues.”
Gabby said: “With the sector making such a valuable contribution to the UK economy, the new government should seize the opportunity to support the growth of the sector. The previous government’s policy of removing the ‘tax free’ shopping VAT relief for international tourists must be reversed. This would make the UK competitive with EU countries, which retain this VAT relief, and an attractive destination for international consumers.”
She added: “Redesigning this VAT relief also offers a real opportunity to introduce a technology enabled solution – improving the experiences of consumers, while also reducing the administrative burden on HMRC.”
Gabby said: “Reintroducing this relief should be seriously considered by the government as it offers real potential to boost growth in such an important sector of our economy. Bringing in a new VAT free shopping relief offers the opportunity to redesign the scheme and implement a digital solution for the benefit of both HMRC and consumers.”
