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Airport shops urged to pass VAT savings on to customers | Airport shops urged to pass VAT savings on to customers |
(about 2 hours later) | |
Airport shops are being urged to pass VAT savings on after it emerged some are keeping the extra money they earn when customers show boarding passes. | Airport shops are being urged to pass VAT savings on after it emerged some are keeping the extra money they earn when customers show boarding passes. |
Passengers are asked to do so at tax-free shops in UK airports so retailers can avoid paying 20% VAT on purchases made by those flying outside the EU. | |
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. | 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. | Passengers do not legally have to show their boarding pass when buying goods at the airport. |
The Independent newspaper, which first reported on the practice, has claimed that thousands of passengers are now refusing to show them as part of a "grassroots rebellion". | |
Money Saving Expert founder Martin Lewis said: "People withholding their boarding passes will force companies to take note and eventually take action." | Money Saving Expert founder Martin Lewis said: "People withholding their boarding passes will force companies to take note and eventually take action." |
Mr Lewis told BBC Radio 2's Jeremy Vine programme that travellers should ignore claims by retail staff that showing a boarding pass is obligatory. | |
"You're not protecting the sanctity of Britain by giving them your boarding pass, you are enabling the commercial company to get a reduction on its tax bill," he said. | "You're not protecting the sanctity of Britain by giving them your boarding pass, you are enabling the commercial company to get a reduction on its tax bill," he said. |
A spokesman for Boots, one of many retailers who operate in UK airports, said the company did claim back some VAT for non-EU passengers but added that this was in accordance with the rules set out by the government. | |
WH Smith said it would be impossible to have a pricing system which distinguished between travellers to EU and non-EU destinations. | |
What is your reaction to this story? Have you refused to show your boarding pass when buying goods? You can share your comments by emailing haveyoursay@bbc.co.uk. | |
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