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'Deeply damaging': Courts rule against challenge to new UK VAT rules


‘Deeply damaging’: Courts rule against challenge to new UK VAT rules
May 24, 2021
The UK High Court has rules against a legal challenge brought by members of the travel retail industry against the changes to tax-free shopping laws in the country
“The Treasury has baked-in a competitive disadvantage for UK tourism by making this the only country in Europe not to offer tax-free shopping.”
That was the reaction from travel retail industry leaders after the UK’s High Court and Court of Appeal blocked a legal challenge against the country’s new duty-free laws.
The case, brought by
Dufry and
Global Blue, sought to challenge a decision by the Government to withdraw the VAT Retail Export Scheme (RES) and the Extra Statutory Concession (ESC) on duty-free and tax-free shopping. ....

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Brexit impact: Heathrow loses legal bid over end of tax-free shopping for tourists


Heathrow Airport has lost a High Court bid to challenge the scrapping of tax-free shopping for tourists.
Two schemes providing VAT-free shopping for some international visitors were withdrawn by the Treasury at the end of the Brexit transition period on 1 January of this year.
The Treasury and HMRC’s decision related to the VAT Retail Export Scheme (RES) and an Extra Statutory Concession (ESC) on goods at duty-free and tax-free shops.
The ESC allowed VAT-free sales of goods to passengers travelling outside the EU at airports, and the RES covered VAT refunds on non-airport sales of goods also to non-EU travellers, subject to certain conditions being met. ....

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Heathrow Urges Court To Revive VAT-Free Shopping In UK


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Heathrow Urges Court To Revive VAT-Free Shopping In UK
Law360, London (February 22, 2021, 3:21 PM GMT) Heathrow Airport urged an appeals court on Monday to quash the U.K. government s decision to scrap two tax relief schemes for tourists, arguing that the irrational move failed to take into account the program s wider economic benefits.
A lawyer for Heathrow Airport has said the government s reasons for withdrawing the tax relief on goods at duty-free and tax-free shops were fundamentally flawed. (AP Photo/Kirsty Wigglesworth) Daniel Beard QC, counsel for the airport, said the government s reasoning that led it to withdraw the VAT Retail Export Scheme and the Extra Statutory Concession on goods at duty-free and tax-free shops in Britain was. ....

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