Current status: Answered by Shona Robison on 7 October 2025
To ask the Scottish Government what its position is on the reported calls from the Scottish Retail Consortium and Scottish Tourism Alliance for the UK Government, in its upcoming Budget, to restore tax-free shopping for overseas visitors as a means of supporting Scotland’s retail, tourism and hospitality sectors.
The Scottish Government opposed the abolition of tax-free shopping when it was announced in 2020 and consistently called for the previous UK Government to listen to the industry and reconsider their position on the issue.
The Scottish Government recognises how vital tourism is to our economy. It creates jobs, sustains communities and contributes significantly to the economy and enables visitors and residents alike to experience the incredible offer we have here in Scotland. Many EU countries continue to offer tax-free shopping for non-EU visitors, which make them a more attractive tourist destination. Scotland’s vibrant retail sector is put at a disadvantage as a result.
We call on this UK Government to ensure they are listening to these consistent industry calls regarding the reinstatement of VAT free shopping.
Ultimately, the Scottish Government believes that all tax powers should be devolved to the Scottish Parliament so that we can provide the support that Scottish retailers and tourism businesses need.