A plan by the government to limit a Vat-refund scheme to purchases above €175 could cost more than 1,000 jobs in the already hard-hit retail sector, according to a new economic analysis.
The move to amend the Retail Export Scheme is part of the Withdrawal of the UK from the European Union (Consequential Provisions) Act 2019 and would be implemented in the event of a no-deal Brexit.
Retailers have claimed the changes to the scheme would be a “body blow” to tourism. At present the scheme allows a tourist from outside of the EU to claim a refund of the Vat charged on goods purchased in Ireland. However, the Brexit bill will amend it to exclude all purchases of less than €175.
All non-EU tourists, including those from the UK when it leaves the EU, would have to spend over €175 on an individual purchase per store in order to reclaim Vat when leaving Ireland.
