PPRuNe Forums - View Single Post - Squeezy and VAT on onboard sales (non EU)
Old 28th April 2011 | 12:39
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Globaliser
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From: UK
Originally Posted by ExXB
It appears to me that Squeezy is charging prices inclusive of 20% VAT when they have no right to (on flights out of the EU).
The airline's entitled to say it's £10 for a widget, wherever you're flying to. It must pay £1.67 to HMRC if you're on an intra-EU flight, but it keeps all of your £10 if you're flying to somewhere outside the EU. There's no rule that says they can't do that.

That's the way that the shops work at the airport, too.

It would be wrong if they told you that the price is "£8.33+VAT" for the widget, but then take £10 off you on a non-EU flight and not pay the difference to HMRC. But I'd be astonished if that's what they tell you.
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