Policy paper

Revenue and Customs Brief 34 (2014): VAT Retail Export Scheme - market engagement on a digital solution

Published 26 September 2014

This policy paper was withdrawn on

This publication was originally archived on 14 April 2015.

This publication was originally archived on 14 April 2015.

Introduction

Businesses interested in working with HM Revenue and Customs (HMRC) to develop a digital system to support the VAT Retail Export Scheme (RES) are invited to register for a forthcoming market engagement event.

This brief sets out the background to the event and explains how to register.

Who needs to read this?

Any business interested in working with HMRC to develop a digital VAT RES system.

Background

The VAT Retail Export Scheme - known as Tax Free Shopping - allows visitors from outside the EU to claim a refund of VAT on goods they buy and export from the EU in their personal luggage.

HMRC has been reviewing the scheme since Budget 2013, with the key objectives of improving the customer experience and protecting VAT revenue. A formal consultation ran from 1 July to 30 September 2013.

The government’s response to the consultation acknowledged that a digital solution was the leading option for change and committed to explore this. It was also noted that any digital solution would be dependent on a strong business case and finding an acceptable means of funding.

A number of interim improvements to the current operation of the scheme were also set out. This work is being taken forward and a separate communication will be sent to registered stakeholders in early October.

Market engagement event

The next step in the development of a digital solution is a market engagement event which HMRC will host in October 2014. We will use the event to develop our requirements for a digital system and gain a better understanding of supplier capabilities and interest in helping to develop and fund a solution. Businesses interested in working with HMRC to develop and deliver a digital solution will be required to register to attend the market engagement event.

Details on how to register for the event, together with a summary of HMRC’s evolving high-level requirements for a digital system, are contained in the Prior Information Notice. More details on the event will be provided to those who register.

If you have any queries about this update or the review, please email:

resconsultation.idt@hmrc.gsi.gov.uk

Issued: 26 September 2014