The Government does not have an estimate of the cost to the Exchequer of the misuse of Low Value Consignment Relief (LVCR). There is also no estimate of the number of compliant retailers that went out of business because of the misuse of LVCR by others.

The figure of £90 million additional yield for 2012/13 resulting from the removal of LVCR given in the previous answer is an indication of the extent of the misuse in the Channel Islands. The total yield for this measure over the period 2012/13–2016/17 was £500 million.

The Chancellor of the Exchequer announced on 24 September 2020 that the temporary reduced rate for tourism and hospitality will be extended to 31 March 2021. This measure has been extended to support the cash flow and viability of businesses in the hospitality and tourism sectors.

All businesses that supply services which benefit from the temporary reduced rate are able to apply the reduced rate to advance bookings that take place between 15 July 2020 and 31 March 2021 and can make any necessary adjustments in subsequent VAT returns.

The Government has announced that the VAT Retail Export Scheme will not be extended to EU visitors, and will be withdrawn for all non-EU visitors, following the end of the transition period. However, retailers will continue to be able to offer VAT-free shopping to non-EU visitors who purchase items in store and have them sent direct to their overseas addresses and this will be available to EU visitors following the end of the transition period.

The final costing will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government recognises the challenge these businesses face. The Chancellor announced the Winter Economy Plan on 24 September. This includes an extension to the temporary 5 per cent reduced rate of VAT on goods and services supplied by the tourism and hospitality sectors from 12 January to 31 March 2021. This alone provides continued support for the cash flow and viability of over 150,000 businesses and protection for 2.4 million jobs in the tourism and hospitality sectors. The Plan also provides further support to businesses and jobs over the coming months.

The Government has announced that the VAT Retail Export Scheme will not be extended to EU visitors, and will be withdrawn for all non-EU visitors, following the end of the transition period. However, retailers will continue to be able to offer VAT-free shopping to non-EU visitors who purchase items in store and have them sent direct to their overseas addresses and this will be available to EU visitors following the end of the transition period.

The final costing will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government recognises the challenge these businesses face. The Chancellor announced the Winter Economy Plan on 24 September. This includes an extension to the temporary 5 per cent reduced rate of VAT on goods and services supplied by the tourism and hospitality sectors from 12 January to 31 March 2021. This alone provides continued support for the cash flow and viability of over 150,000 businesses and protection for 2.4 million jobs in the tourism and hospitality sectors. The plan also provides further support to businesses and jobs over the coming months.

The Government has announced that the VAT Retail Export Scheme will not be extended to EU visitors, and will be withdrawn for all non-EU visitors, following the end of the transition period. However, retailers will continue to be able to offer VAT-free shopping to non-EU visitors who purchase items in store and have them sent direct to their overseas addresses and this will be available to EU visitors following the end of the transition period.

The final costing will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government recognises the challenge these businesses face. The Chancellor announced the Winter Economy Plan on 24 September. This includes an extension to the temporary 5 per cent reduced rate of VAT on goods and services supplied by the tourism and hospitality sectors from 12 January to 31 March 2021. This alone provides continued support for the cash flow and viability of over 150,000 businesses and protection for 2.4 million jobs in the tourism and hospitality sectors. The Plan also provides further support to businesses and jobs over the coming months.

The Government has announced that the VAT Retail Export Scheme will not be extended to EU visitors, and will be withdrawn for all non-EU visitors, following the end of the transition period. However, retailers will continue to be able to offer VAT-free shopping to non-EU visitors who purchase items in store and have them sent direct to their overseas addresses and this will be available to EU visitors following the end of the transition period.

The final costing will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government recognises the challenge these businesses face. The Chancellor announced the Winter Economy Plan on 24 September. This includes an extension to the temporary 5 per cent reduced rate of VAT on goods and services supplied by the tourism and hospitality sectors from 12 January to 31 March 2021. This alone provides continued support for the cash flow and viability of over 150,000 businesses and protection for 2.4 million jobs in the tourism and hospitality sectors. The Plan also provides further support to businesses and jobs over the coming months.

The Government has announced that the VAT Retail Export Scheme will not be extended to EU visitors, and will be withdrawn for all non-EU visitors, following the end of the transition period. However, retailers will continue to be able to offer VAT-free shopping to non-EU visitors who purchase items in store and have them sent direct to their overseas addresses and this will be available to EU visitors following the end of the transition period.

The final costing will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government recognises the challenge these businesses face. The Chancellor announced the Winter Economy Plan on 24 September. This includes an extension to the temporary 5 per cent reduced rate of VAT on goods and services supplied by the tourism and hospitality sectors from 12 January to 31 March 2021. This alone provides continued support for the cash flow and viability of over 150,000 businesses and protection for 2.4 million jobs in the tourism and hospitality sectors. The Plan also provides further support to businesses and jobs over the coming months.

The Government has temporarily applied a reduced rate of VAT (5 per cent) to tourist attractions and goods and services supplied by the hospitality sector. It came into effect on 15 July 2020 and will end on 12 January 2021 and applies across the UK.

The temporary reduced rate will support over 150,000 businesses and protect 2.4 million jobs following the lifting of the COVID-19 lockdown.

The Government has temporarily applied a reduced rate of VAT (5 per cent) to tourist attractions and goods and services supplied by the hospitality sector. It came into effect on 15 July 2020 and will end on 12 January 2021 and applies across the UK.

Applying the reduced rate for a longer period would come at a significant cost to the Exchequer. However, the Government keeps all taxes under review.

The Northern Ireland Protocol ensures that Northern Ireland remains part of the UK’s VAT system. Its provisions on VAT rates provide the flexibility to introduce certain new zero and reduced rates in Northern Ireland. For example, this agreement allows the Government to meet its commitment of introducing a zero-rate for women’s sanitary products.

VAT raises a significant amount of revenue and plays an important part in funding the Government's spending priorities. While all taxes are kept under review, there are currently no plans to introduce any other zero or reduced rates of VAT.

The Government has put in place an unprecedented package of support for businesses and individuals affected by COVID-19. This includes the deferment of VAT and Self-Assessment payments for specified periods, with interest on these deferred payments waived. The VAT deferral ended at the end of June as planned, and payments are now due as normal.

HMRC’s Time to Pay scheme continues to be available to any taxpayer in temporary financial distress and with outstanding tax liabilities, including those in the coach industry. Time to Pay agreements are tailored to each taxpayer’s circumstances and can include deferment of tax payments and an agreed time period to repay. They can cover any tax liability including VAT.

Any taxpayer with an existing Time to Pay arrangement that finds their circumstances have changed as a result of COVID-19 should contact HMRC to discuss their situation. HMRC’s dedicated COVID-19 helpline can be reached on 0800 024 1222.

Eligibility for VAT refunds for public bodies is subject to strict criteria, as set out in UK legislation. Although the Government keeps all taxes under review, there are no plans to extend the scope of Section 33 at this time.

HMRC do have the discretion to pay rewards, and these are based on what is achieved as a direct result of information provided. HMRC conduct an internal review process for determining whether or not a reward is payable and, if so, how much that reward should be. Rewards are offered at HMRC’s discretion and are not calculated as a means of compensation for the cost of gathering information that is subsequently supplied to HMRC, nor are they subject to negotiation.

HMRC’s policy is to neither confirm nor deny the existence of information provided by individuals or to confirm the fact that any individual has, or has not, provided information, directly or by inference, including comment on specific reward payments. In common with other law enforcement agencies in the UK, HMRC maintain this stance as a means of effective protection of the public interest; to protect the safety of any informants and to ensure that future potential informants are not discouraged from coming forward.

In April 2012 the Government took action to remove Low Value Consignment Relief (LVCR) for goods imported from the Channel Islands. Estimates were published at the time showing yield from this measure to be £90 million in 2012-13.

From 1 January 2021 the Government will be introducing changes that will see the removal of LVCR from all imports and make online marketplaces liable for VAT on low value imported goods sold through their websites.

As part of the response to the pandemic, in April 2020 the Government introduced a temporary zero-rate of VAT from 1 May 2020 to 31 July 2020 on all sales and imports of Personal Protection Equipment (PPE) for protection from infection. This temporary zero-rate has now been extended to 31 October 2020, and benefits all users of PPE, including dentists. The Government has no plans to review the scope of this relief at this time.

The Government continued to explore the potential digitisation of the VAT Retail Export Scheme in parallel with the consultation on the approach to duty-free and tax-free goods in Great Britain. There were a range of views submitted and the Government has today published a summary of responses to the consultation.

After reviewing the long-term approach to tax-free goods as part of that consultation, the Government announced today that the VAT Retail Export Scheme would be withdrawn from 1 January 2021 and would therefore not be digitised or extended to EU residents.

The Government continued to explore the potential digitisation of the VAT Retail Export Scheme in parallel with the consultation on the approach to duty-free and tax-free goods in Great Britain. There were a range of views submitted and the Government has today published a summary of responses to the consultation.

After reviewing the long-term approach to tax-free goods as part of that consultation, the Government announced today that the VAT Retail Export Scheme would be withdrawn from 1 January 2021 and would therefore not be digitised or extended to EU residents.