In another twist of the Brexit puzzle, Ireland is preparing to ramp up duty-free sales in its airports as a way to help revive its travel industry, while the UK is preparing to end all duty-free sales except for alcohol and tobacco.
The situation exists because while both countries were EU members, there were no duties because of EU agreements, and shopping in duty-free stores was limited to passengers flying outside the EU. As of January 1, flights between the UK and EU will no longer be governed by that rule.
While Ireland plans to benefit its economy by opening duty-free shopping and VAT refunds to UK residents traveling in and out of Ireland, the UK is taking the opposite tack—its tax authorities have decided to end tax-free shopping at airports for everyone, no matter their travel plans, with only alcohol and tobacco excepted.
That means a shutdown of duty-free shops selling electronics, food, clothing, jewelry and luxury goods, which UK officials believe are being bought by UK residents and brought back into the country, paying less than they would in neighborhood stores, which would be at an unfair disadvantage.
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