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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 1 hour 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 on VAT savings made in some cases when customers show boarding passes.
Passengers are asked to do this so retailers can identify who is flying to non-EU countries and avoid paying 20% VAT on customers' purchases. Passengers are asked to show passes so retailers can identify who is flying to non-EU countries and avoid paying 20% VAT on customers' purchases.
Treasury minister David Gauke said VAT relief at airports was intended to reduce prices for travellers. Treasury minister David Gauke said VAT relief at airports was intended to reduce prices for travellers, not be a windfall gain for shops.
He warned it was not meant to provide a windfall gain for shops. The practice is not illegal, but has been challenged by some passengers.
Passengers do not legally have to show their boarding pass when buying goods at the airport. The Independent newspaper has claimed that thousands of people are now refusing to show their boarding passes as part of a "grassroots rebellion".
The Independent newspaper has claimed that thousands of passengers are now refusing to show them as part of a "grassroots rebellion". Customers are not legally obliged to show their passes when buying goods at the airport.
The newspaper's travel editor, Simon Calder, told BBC Radio 5 live: "If you take a £6 bottle of sun cream the VAT element is £1.The newspaper's travel editor, Simon Calder, told BBC Radio 5 live: "If you take a £6 bottle of sun cream the VAT element is £1.
"So if you fly to Greece, the retailer pays that to the government, if you fly to Turkey and the retailer can find out, then it goes straight into their pockets - nothing illegal about it at all but I will always challenge it.""So if you fly to Greece, the retailer pays that to the government, if you fly to Turkey and the retailer can find out, then it goes straight into their pockets - nothing illegal about it at all but I will always challenge it."
He said "all kinds of stories" have been given by retailers to explain why passengers should show their boarding passes, including that it is for security reasons, which he said is "complete tosh". He said "all kinds of stories" had been given by retailers to explain why passengers should show their boarding passes, including that it is for security reasons, which he said is "complete tosh".
Mr Calder added: "They [retail staff] have just been told 'you have to ask for a boarding pass', which is why you get nonsense like when you buy a book or a magazine or newspaper and there is no VAT anyway, and they still want to know where you are flying to - even though it doesn't make the slightest bit of difference to anybody."Mr Calder added: "They [retail staff] have just been told 'you have to ask for a boarding pass', which is why you get nonsense like when you buy a book or a magazine or newspaper and there is no VAT anyway, and they still want to know where you are flying to - even though it doesn't make the slightest bit of difference to anybody."
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.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.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.WH Smith said it would be impossible to have a pricing system which distinguished between travellers to EU and non-EU destinations.
Earlier this year, BBC Radio 4 listener David Owen questioned why he had to show his boarding pass at airport shops.Earlier this year, BBC Radio 4 listener David Owen questioned why he had to show his boarding pass at airport shops.
He said: "If I buy a sandwich in a railway station, the cashier doesn't insist on knowing where I am going, so why am I asked to produce a boarding card by making the same purchase in the airport departure lounge?"He said: "If I buy a sandwich in a railway station, the cashier doesn't insist on knowing where I am going, so why am I asked to produce a boarding card by making the same purchase in the airport departure lounge?"
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.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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