Currently, Guernsey shoppers in the UK can claim back the VAT on items bought in some stores, such as retail outlets, by showing staff their passport and filling in a form.
Pictured: Guernsey travellers will no longer be able to reclaim VAT on purchases and then bring the goods back in their luggage.
University students can do the same, providing they are due to return to Guernsey within three months of the purchase. However, that will change from 1 January 2021.
“As part of these changes, VAT refunds for overseas visitors in British shops will be removed,” said a spokesperson for the UK Government.
“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.”
How this will work in practice remains to be seen, given that some retailers do not ship to the Channel Islands. Even if they do, the obligation to have them posted home will reduce the discount they receive by claiming back VAT.
Pictured top: Selfridges Department Store in London.