British firms lose out on VAT-free Chinese shopping spree

London’s global rivals cashed in on VAT-free shopping during a major Chinese holiday this month, with the UK missing 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 per cent higher than the day before. 

But British firms lost out to those in France, Spain and Italy, which reaped greater rewards from VAT-free shopping.

More than 400 chief executives back a Mail campaign for the levy to be axed. 

Firms such as Burberry, and Mulberry want tax-free shopping, which was scrapped in 2021, reinstated.

Adam Holdsworth, boss of N.Peal, which sells cashmere clothing, said it was ‘common sense’ to scrap the tax because Chinese visitors were opting to ‘spend their money’ elsewhere.