Blick Rothenberg, a leading audit, tax, and business advisory firm, is urging the UK government to reintroduce VAT-free shopping relief for international tourists in support of the country’s fashion industry.
As London Fashion Week celebrates its 40th anniversary, Gabby Donald, Corporate Tax Partner at the firm, highlights the significant contributions of the UK fashion and textile industry, which adds £62 billion to the economy and supports one in every 25 jobs.
According to research commissioned by the UK Fashion and Textile Association, the industry generates over £23 billion in tax revenues annually. Donald stresses that reinstating tax-free shopping VAT relief would make the UK more competitive with EU countries, which continue to offer this benefit to international tourists, and attract more global consumers to British brands.
Donald also points to the opportunity for a modernised VAT relief system: “Redesigning this relief with a technology-enabled solution would improve the experience for consumers and reduce administrative burdens on HMRC.”
With the fashion sector playing such a critical role in the UK economy, the government is being encouraged to seize the opportunity to support its growth by restoring VAT-free shopping and helping the industry remain globally competitive.
