This means that passengers will be able to buy duty-free alcohol and tobacco products, where available, in British ports, airports, and international train stations, and aboard ships, trains and planes.
This follows a consultation with industry on our approach to taxing goods carried across borders for personal use from January 2021, as the end of the transition period brings with it powers to set our own rules in this area.
The amount that passengers can bring back with them from non-EU Countries will also be significantly increased, and extended to EU countries, providing one of the most generous allowances anywhere in the world.
This means that passengers coming to Britain will be able to bring back, for example, three crates of beer, two case of still wine and one case of sparkling wine to GB without paying UK duties.
Tax-free sales
We are also ending tax-free sales in airports of goods such as electronics and clothing for passengers travelling to non-EU countries, following concerns that the tax-concession is not always passed on to consumers in the airport. In some instances these tax-free goods are brought back into the country by UK residents, putting high street retailers at a disadvantage.
VAT Retail Export Scheme
As part of these changes, VAT refunds for overseas visitors in British shops will be removed. Overseas visitors will still be able to buy items VAT-free in store and have them sent direct to their overseas addresses, while the costly system of claiming VAT refunds on items they take home in their luggage will be ended.
