Surge in Tourists in Paris and Milan as UK Abolishes Tax-Free Shopping

The elimination of tax-free shopping in the UK has diverted tourists to other European destinations like Paris and Milan, where they can still access VAT rebates. An analysis reveals that around 20% of non-EU tourists who claimed VAT refunds in Britain in 2019 have sought similar benefits in other EU countries. The policy change has impacted tourist spending patterns, with an increase in average spending in Paris and Milan. Despite concerns from British retailers and tourism stakeholders, the UK government maintains that the move has benefited public finances and has not significantly deterred tourists.

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