Airport VAT. The real reason shops demand boarding pass.
There has been an up raw amongst fliers across the country this week as shoppers in UK airports are now refusing to show their boarding passes when they purchase things from the shops.
You may of seen my article about the mini revolution taking place at the moment as shoppers feel like they are being scammed. But what are airports really doing when they scan your boarding pass?
Many people assume the boarding pass requirement at the checkout is a security procedure or a way of getting your duty free discount, but now the truth has been revealed.
Airports are using the boarding passes so that THEY don’t have to pay the tax, but they aren’t necessarily passing the benefit on to customers.
Items that are being taken to destinations outside the EU are exempt from VAT, and retailers can avoid the tax if they produce evidence such as a scan of a boarding pass. Retailers are not obliged to reduce the prices though, meaning savings may not always be passed on to customers.
A HMRC spokeswoman told the Mirror: “Airport tax or duty free shops may treat the sale of goods to passengers intending to take them to non-EU destinations as zero-rated exports, provided they retain suitable evidence such as by scanning the boarding card.
“There is nothing in VAT law to require the production of a boarding pass to purchase goods in airport shops, but without such evidence the supply cannot be zero-rated as an export.
Duty free prices have also come under fire as it has been revealed that duty-free prices aren’t always cheaper. The Independent recently found that Boots Nivea Sun Spray cost £8 on the high street and £8 in duty- free too!
CLICK HERE to read more.