We reproduce below an update note that ICAEW has received from HMRC regarding the proposed digitisation of the VAT Retail Export Scheme (RES).
The VAT RES allows travellers not established in the EU to receive a refund of VAT paid on goods exported to destinations outside the EU, subject to certain conditions, and retailers to zero-rate goods sold to entitled customers when they have the necessary evidence of export and have refunded the VAT to the customer. Details of the RES can be found in HMRC Notice 704.
HMRC is seeking ideas from businesses that operate the RES as to how the procedures can be improved to best fit with digitisation. If you have any suggestions, please send them directly to firstname.lastname@example.org, with a copy to email@example.com.
VAT RES update from HMRC
This note is dated 13 February 2018 and the full text is:
“The current paper based VAT RES system is being digitised to improve the efficiency for both retailers and travellers and also to help reduce fraud.
“So far, we’ve:
“Following the meetings with stakeholders, we recognised that the industry wanted clarification of whether there are likely to be any changes to HMRC’s policy and the essential scheme requirements when the process is digitised.
“We have consulted with our Policy colleagues who have confirmed that:
“HMRC, together with UK Border Force, will be responsible for risk scoring the passenger data that is transmitted to us before endorsing the claim. This is the most significant change to the actual process. HMRC is seeking a solution from the RES industry to address:
“Any questions can be sent directly to the project team mailbox - firstname.lastname@example.org”