The Airport VAT fiddle

By : Administrator
Published 12th August 2015 |
Read latest comment - 12th August 2015

I couldn't believe this when I heard it on the news today.

So the airport departure shops and concessions have been pocketing some of the VAT money that we are charged when buying your book, suncream or whatever.

They always ask you for your boarding pass, which I assumed was some kind of pointless security exercise, but it's actually to establish if you are flying outside the EU. If you are, the retailer can pocket the VAT element as there is no requirement to pass it on to HMRC.

The Independent newspaper is reporting a grassroots campaign of people refusing to show their boarding pass to retailers, and boycotting those that refuse to serve them.

According to the BBC

Treasury minister David Gauke said VAT relief at airports was intended to reduce prices for travellers.

He warned it was not meant to provide a windfall gain for shops.

Passengers do not legally have to show their boarding pass when buying goods at the airport.

Absolute sharks! Then on the radio there was a spokesman from WH Smiths trying to justify it by saying how can we separate VAT from travellers inside or outside the EU? Well you seemed to be doing it already by checking boarding cards and pocketing the cash!

I suspect there will be a big backlash from this and we shall witness people power in action 


Steve Richardson
Gaffer of My Local Services
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Comments

Yep, heard it being discussed on the Radio the other day.   Some chap, who used to work at phone4u stated that they looked at opening stores at airports but decided against it as there are more overheads because everything has to go through security people and products and therefore costs are higher as well BAA charging high charges.  So they chose not to open in airports and he reckoned that stores are in there for brand purposes than to make money....       #justsaying

If interested, can still listen to it hear, starts just before 1 hour 30 mins and lasts about a minute.

However, I'm still inclined to keep my boarding pass to myself in future!


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