VAT Retail Export Scheme (Northern Ireland)

VATRESNI8350 - Handling correspondence: Complaint about the availability of the VAT retail export scheme for non-EU visitors

Below is a draft letter that may be sent to a Northern Ireland resident who complains that overseas travellers are able to buy tax free goods in the UK. The letter should be adapted to suit individual circumstances.

Dear [insert name],

VAT Retail Export Scheme

Thank you for your letter of [insert date] about VAT refunds for overseas visitors. 

The retail export scheme allows overseas visitors to recover VAT incurred in Northern Ireland as agreed under the Windsor Framework.  HM Revenue and Customs has responsibility for setting the conditions, which must be met by retailers who operate the scheme.  Because the scheme is not compulsory, the decision to operate it is a commercial one that rests solely with the retailer. 

The scheme is only available to non-EU residents who purchase goods from participating retailers in Northern Ireland. VAT refunds are not available to non-UK residents for goods and services that they consume whilst they are in Northern Ireland. In addition, the scheme is not available in Great Britain, and UK import VAT will be due if goods are considered to have entered Great Britain directly from Northern Ireland. Most visitors to the UK do make some contribution to the tax collected by the Exchequer. 

I hope this reply helps to clarify the position regarding the availability of tax-free shopping in the UK. 

Yours sincerely,