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Digitisation of tax free shopping system backed by Global Blue

Government plans to digitalise the tax free shopping system is being backed by industry specialist Global Blue.

The company is calling for a “tax free shopping revolution” following a boost in post-Brexit spending due to the weakening value of the pound.

Global Blue aims to build on the Government’s action to move to a digital tax free shopping system as announced in the Autumn Statement.

A digital update of the current tax free shopping system will bring significant economic benefits to the UK, including a rise in inbound tourists, more annual international spend and an increase in jobs, all of which will contribute to a predicted increase to the UK’s GDP, the firm believes.

Currently, tourists visiting the UK have to use a paper-based system to claim back their tax, which is time-consuming and has potential for fraud – both of which devalue UK’s tax free shopping offering.

Research is to be commissioned into the economic costs and benefits of tax free shopping to demonstrate in more detail the net benefits to tourist destinations.

Global Blue UK and Ireland managing director Gordon Clark said: “Most of the world’s top tourist destinations offer tax free shopping and their numbers are increasing every year.

“To remain competitive with tourist destinations in Europe and throughout the world the UK has to have a strong and effective tax free shopping system.

“With 82% of leisure visits and 64% of all visits to the UK involving shopping, we are calling upon retailers across the country to encourage growth in the number of participating stores throughout the UK.

“Together, government, retailers and refund agencies can revolutionise tax free shopping in the UK and give Britain’s economy a much-needed boost.”

He added: “Hugely important, the tourist industry accounts for 9% of the whole of the UK’s GDP, with a value of £126.9 billion, £24.2 billion of which is generated by inbound tourism.

“Offering tax refunds makes great economic sense – it allows a country to compete with rival destinations for that valuable tourist spending.

“The variety, quality and cost of tax free shopping are major elements of our country’s appeal to international tourists giving us a competitive advantage, particularly over our European neighbours.”

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