British firms miss out on VAT-free shopping spree in China
British firms miss out on VAT-free shopping spree in China
London’s global rivals benefited from VAT-free shopping during a major Chinese holiday this month, while Britain lost out due to its hated tourist tax.
China’s eight-day annual Golden Week festival from October 1 saw millions of its citizens visit Europe.
Planet, which processes VAT refunds, said sales on October 2 were 67 percent higher than the previous day.
But British companies lost out to those in France, Spain and Italy, which benefited more from VAT-free shopping.
More than 400 CEOs are supporting an email campaign to abolish the levy.
Missed: Companies like Burberry (pictured) and Mulberry want to reintroduce tax-free shopping, which was abolished in 2021
Companies such as Burberry and Mulberry are calling for the reintroduction of tax-free shopping, which was abolished in 2021.
Adam Holdsworth, boss of N.Peal, which sells cashmere clothing, said it was “common sense” to scrap the tax because Chinese visitors had chosen to “spend their money elsewhere”.