Showing Boarding Card in airport shops

[TurboTed]

When passengers buy something from WH Smiths or Boots in MAN (after going through security) they are always asked to show their boarding cards - why?

On one occassion the sales assistant made the person being served go and get the boarding card from their companion who was somewhre else in the shop, causing quite a delay.

I have asked the reason why a few times in the shops but have got different answers.

So - whats the real reason and what happens if you refuse?

I don't know about the other shops in there, I haven't bought anything from them.

[crazyscot]

Even if items are being sold at the same prices to all comers and advertised as VAT or duty-free, VAT and duty still apply to items which are not being sold for export. The retailer still has to account for the status of every item sold and pay the appropriate amount to HMG where tax is due. Obviously, this means that their effective cost of sales differs depending on the destination, so they want to get it right to maximise their profits, not to mention avoiding a compliance audit from HMRC.

[PAXboy]

The secondary benefit is marketing information. Where are your clients going to? Can you spot trends of spending linked to destination? All of that sort of thing.

The irritating point is that, to comply with the tax regs you HAVE to show the BP. At LHR last year (or year before!) I had left the BP in the lounge. So I told them the info on it but was refused and had to go back to get it. The agent merely read off the pass what I had told her but she HAD to see the pass for procedural reasons.

[dollydaydream]

The showing of the boarding card in Boots seems to be a fairly recent thing- why? Crew in uniform, when buying sandwiches, tights etc are also asked for a bc!!??

[englishkev]

Had the same problem in Heathrows terminal 5 last month again in WH Smiths.I only wanted to buy a bottle of coke and a newspaper.Yet at Manchester on the way out it wasnt required !!!!:ugh:

[Capot]

I was asked to show a boarding card to buy a magazine in the WHS airside shop at T5. I asked, "Why, just for interest?".

She immediately said "you don't have to", and rang up the sale. But I'm still wondering. I think the guess about capturing marketing data is probably what it's about.

[Skipness One Echo]

What is the reason I am required to show a boarding card to buy a newspaper and a sandwich?
If it is required why is it only at certain airports?

Duty Free I get but a paper???

[Rush2112]

I suspect it's to do with VAT, as someone earlier mentioned. Certainly here in Singers, even buying a pack of, er, aspirin from the chemists if you show the BC you get it excluding sales tax (called GST here), whereas airport staff buying same items would be charged the extra 7%.

[PAXboy]

englishkevHad the same problem in Heathrow's terminal 5 last month again in WH Smiths.I only wanted to buy a bottle of coke and a newspaper.Yet at Manchester on the way out it wasn't requiredMy guess is that part of this is due to those terminals where inbound and outbound, domestic and international pax mingle. Depending on your destination and status the VAT rate may be different?

For several decades, terminals have been designed to ensure that In/Out and Domestic/Int pax could not mix, so as to keep contraband and nefarious materials out of circulation. That is, lax security at one location enabling materials to be delivered to another and handed over before the pax went land side.

As I understand it, for LHR T5, all of this was thrown away - just so that they could have ONE set of shops. This enables them to charge more rental to the shops as the shops have a larger pool of pax.

I sit to be corrected on these points.

[Seat62K]

I've always thought that it had something to do with preventing airport workers making VAT- and duty-free purchases (hence not being asked to produce the boarding pass for zero-rated items).

[denis555]

Question:

if airside shops do not charge UK taxes on items, does that include tobacco and alcohol?

If which case why do WH Smiths charge around 10% more for cigarettes than a high street shop? ( remembered from when I smoked).

Do they pocket the duty and then add even more for themselves?

Just wondered.

[k3lvc]

Most of the above are right and I'm not going to add much in detail but

Boarding card shows destination - Domestic, EU or non-EU which is then linked back to transaction for VAT analysis

Retailers can use agregated data for their own marketing analysis but not in great detail i.e. can't see that pax A travelling to destination B bought items XYZ but can see that x% of pax travelling to Greece bought tobacco.

WHS do premium price vs High St - same with confectionery, soft drinks etc even though they get away with not paying VAT/Duty on a number of transactions. If you saw the rent they're charged you'd understand why. Re Tobacco in WHS I seem to remember there's a clause that anyone buying single packets is likely to be for consumption in the country (even though under new regs you can't smoke in the airport :ugh:) therefore are not considered to be 'Duty Free'

In summary there's no black & white - just a whole load of shades of grey that retailers interpret in different ways.

[Capot]

It's news to me that VAT is not chargeable in airside shops on goods being sold to people leaving the country or the EU. Can anyone confirm that?

The duty on certain items like alcohol is another matter entirely, and as we know is deducted from items on which it is due for those leaving the EU.

Of course the big lie in "Duty-Free" shops is that many of the goods sold in them as "duty-free" are not subject to duty in the first place. If you ask the staff about this they are briefed to tell you the lie that VAT is actually "duty", and that "duty-free" really means "VAT-free".

[k3lvc]

Retail price is the same for all pax irrespective of destination but retailer is liable for VAT on all transactions where final destination is within EU. Most profitable outlets are therefore in terminals that are predominantly non-EU long haul.

[Dan Air 87]

I still have to show the boarding card at LHR T3 at places such as Boots and Smiths. I share the question-for what? I am due through there shortly and I will see what happens when I refuse to hand over the boarding pass when I buy a pack of Polo mints there. If I survive I'll get back to you.

[Rush2112]

[quote=Capot;4580434]It's news to me that VAT is not chargeable in airside shops on goods being sold to people leaving the country or the EU. Can anyone confirm that?
quote]

It is a fact that in Singapore, if you show your boarding card, your purchase excludes GST. All flights ex SIN are overseas (until the Changi - Jurong shuttle starts up) so there is no distinction between overseas and domestic, however, there are thousands of workers airside so presumably they buy books, johnnies, whatever, and they get charged GST.

It is a fact that Singapore GST regulations were lifted straight from the UK's VAT regulations.

Read into that what you will. I just realised it's lunchtime, laters...