Misery for London as US and Chinese shoppers flock to Paris and Milan where they can nab a 20% VAT refund
- American and Chinese consumers are now spending money in Paris and Milan.
London’s lack of duty-free shopping meant European stores instead made money during the booming Black Friday weekend.
American and Chinese consumers who once spent their money in UK designer stores have shopped in Paris and Milan, where they can get a 20 per cent VAT refund.
Most countries in Europe have duty-free shopping schemes, but the UK version was abolished by Rishi Sunak in 2021 while he was chancellor. As wealthy tourists from the US and China return to the UK after the pandemic, there are fears UK retailers are missing out on them.
The Mail’s Scrap the Tourist Tax campaign is calling for the break to be reinstated.
More than 400 firms have signed an open letter calling on Chancellor Jeremy Hunt to scrap the tax. New data shows American tourists spent money in European cities last month.
American and Chinese consumers who once spent their money in UK designer stores have shopped in Paris and Milan, where they can get a 20 per cent VAT refund. Pictured: Christmas shoppers in London.
Most European countries have duty-free trading schemes. In the photo: Christmas lights in Milan.
More than half of all American tourist spending in Europe during Black Friday came from France, which accounted for 55 percent of sales. Photo: Giant Santa Claus and Christmas tree decoration in Paris.
Duty-free sales to US tourists were up more than 50 percent across Europe on Black Friday compared with 2019, and rose to 70 percent on Cyber Monday.
Black Friday is an American holiday of discounts that takes place the day after Thanksgiving. But in the run-up to Christmas, it has become a crucial sales day for retailers around the world, including in the UK.
Duty-free sales to US tourists were up more than 50 percent across Europe on Black Friday compared with 2019, and rose to 70 percent on Cyber Monday.
November 20 saw a 100 percent increase in tax-free spending by American visitors in Europe, kicking off the shopping spree. According to retail payments provider Planet, the amount spent per transaction increased by more than 65 percent compared to the previous week.
More than half of all American tourist spending in Europe during Black Friday came from France, which accounted for 55 percent of sales. It is followed by Italy, which accounts for 19 percent.
Paul Barnes, chief executive of the International Retail Trade Association, said: “This is further evidence of the damage the end of duty free shopping is doing to the UK economy.”