Tourists turning to tax-free EU

THOUSANDS of tourists who previously shopped tax-free in Britain are now heading to Paris, Milan and Madrid instead, a study shows.

The revelation comes after Selfridges announced more redundancies, blaming the hated ‘tourist tax’ for falling sales. Analysis shows 1 2,000 visitors from outside the EU sought refunds on VAT exclusively in the UK in 2019, a year before the scheme was ended.

A fifth of these visitors now claim rebates in EU countries, where the 20 per cent tax break still applies. France and Italy are the biggest beneficiaries, with at least two-thirds of the swing.

Spain has also benefited, according to Swiss tax rebate provider Global Blue.

Research last year found ending the tax could earn the UK £10billion a year.