UK airport VAT scam

[PAXboy]

No surprises ...

Some of Britain’s top retailers are facing calls to be more honest with airport customers as they pocket millions of pounds in VAT discounts on duty free items without passing on the savings.The airport VAT scam: Retailers told to come clean after being accused of pocketing millions from discounts on duty-free sales - Home News - UK - The Independent (http://www.independent.co.uk/news/uk/home-news/retailers-told-to-come-clean-after-being-accused-of-pocketing-millions-from-vat-discounts-on-airport-dutyfree-sales-10446111.html)

I don't buy from these places as the prices have been bad for many years. Far be it for me to suggest that the skewed pricing of CAA and privatisation has anything to do with this.

[vctenderness]

One of my pet hates. Want to buy a newspaper show your boarding pass - crazy stuff.

But now I know why. Mrs VC often buys gunk in Boots and many times she has come back to me to get her boarding pass so it was so they can scam us for 20% VAT.

I feel the next PPI Type feeding frenzy coming on:ok:

[Metro man]

I can buy the same brands of chocolate cheaper in the supermarket in Singapore than in airport Duty Free shops.

[Basil]

What you pay in airports, particularly for cigs and alcohol, bears little resemblance to the true duty-free price.
I remember it well from, for instance, RAFG and Saccone & Speed in Gib.

[ExXB]

It's not just in the UK, I can't recall any EU airport where there are two prices, ex-EU and intra-EU.

And it's not just the shops. LCC prices for on-board dining :yuk: on ex-EU flights, and this includes flights to Switzerland, are exactly the same as intra-EU flights. They appear comfortable to charge us usary prices but then go on to screw us out of the VAT amount as well.

Well, we do have a choice, dont't we? - we can buy our overpriced snacks and drinks, not including booze, at the airport shops.

And they wonder why pax load up on the booze at the airport!

[T250]

If pax like Darren and Sharon on the annual jaunt to Malaga are gullible enough not to realise this already and cannot simply wait to buy their booze and fags for a far cheaper prize at their destination, then more fool them!

This is no news.

[vctenderness]

It's got nothing to do with duty free booze and fags!:ugh:

It's about the things you buy in the likes of Boots, WH Smith etc. so if you need to buy some sun cream and you are flying outside of the EU you should pay 20% less for it.

That is why they ask to see your boarding card for everything you buy they log your flight and if it non EU claim back the VAT whereas, in fact, they should reduce the price to the customer by the 20%.

[G-ARZG]

Airport price rip-offs ?
Now, breaking news...Bear defecates in woods !

[highflyer40]

Well not really no. I would expect to pay a premium for buying anything in an airport (disregarding duty free-just talking about the normal shops), if they were to not keep the VAT they would just increase the price, so in the end it's all the same.

[seafire6b]

Luckily for me (but unfortunately for WH Smith & Boots etc), the only items I might buy at an airport are newspapers or books, both of which are VAT exempt anyway. Alas, Mrs Seafire however, like a previous poster, invariably and suddenly finds something she "needs" to export to warmer climes.
Little wonder that companies of all sizes and colours call the UK "Treasure Island"!

Incidentally, does anyone know the consequences of simply refusing to proffer a boarding card? Even perhaps by tendering the exact purchase price? Although apparently WH Smith are now saying boarding cards are requested, but never demanded.

[T250]

My point still stands, booze and/or fags or absolutely anything else on sale in any UK airport comes at a premium.

If pax are gullible enough to believe they are getting tax free or VAT free then more fool them! :ugh:

Is it really not that obvious it's a total rip off?

Like any retail advice - shop around and do your homework, don't just pitch up to the airport and expect discounted prices, this is the UK after all.

Having worked in several major UK airports, I can tell you that there is ONE set price for all products in every single shop and VAT or tax free does not come into it regardless of destination or otherwise.

Airports are for travelling, not shopping

[ExXB]

Well, airside at Swiss airports all goods for export (i.e. not including drinks/food for consumption on site) are free of the 8% VAT.

That doesn't mean the prices are any lower than on the high-street, but it does mean every traveller (except domestic - who are not allowed to purchase) is paying the price free of VAT. They don't pay the VAT for some customers, and not for others.

However comments re airport pricing are valid. I once priced an iPad at Dixons at LGW. Their 'bargain price' was higher than the price on Apple's UK web-site, which included the 20% VAT.

Don't buy from airport shops. It's the only way they will begin to treat us like real customers.

[GrahamO]

Wot he said.

Anyone who thinks they get a good deal in any airport on the planet needs their head examining.

[HeartyMeatballs]

My experience of Dixons retail was that they were cheaper than a landside store.

To be honest if people see a price and are happy to pay it, I don't see the relevance of the whats and the whys regarding what happens to their money once it has been handed over. If they were happy to pay it then what's the problem?

I always thought they asked for boarding cards so that they can see which flights make the most money which is important when it comes to negotiating handling fees and the like and not taxation.

[Metro man]

Many years ago, the SUN newspaper did a feature on duty free rip offs. Is showed a half bottle of whisky was cheaper in a certain supermarket than Heathrow duty free.

There followed an advertising campaign by the airport trying to show that prices were the same as high street ones on various non duty free products.

Some things can be cheaper, I bought a BOSE noise cancelling headset for a large saving over city prices. Having aircrew ID often brings a discount.

Personally I would not show my boarding pass unless the price was cheaper. Sod em.

[vctenderness]

Quote:

Well not really no. I would expect to pay a premium for buying anything in an airport (disregarding duty free-just talking about the normal shops), if they were to not keep the VAT they would just increase the price, so in the end it's all the same.

Well they couldn't could they?

That would mean a product would have two prices one for EU one for non EU.

You don't seem to understand the problem here.

Under rules purchases made airside in UK are free of VAT if they are for flights to non EU destinations so a £10 item should be £8 after the 20% VAT was refunded at source to the purchaser. If travelling to EU destination the VAT is due and the item is £10.

What these bandits are doing is asking to see boarding card and then logging all non EU sales and claiming back the VAT for themselves.

Duty Free sales and prices are a red herring in this debate.

On that subject Bombay Sapphire gin is frequently cheaper in Supermarkets in UK than in DF shop although it higher strength in DF. Also Three Barrels Brandy was £15 Per litre in Morrison's recently and £23 pounds in Gatwick DF:eek:

[ExXB]

Can they sell it if you won't present a boarding card? That is, is it contrary to airport/tax authorities/management requirements?

Will they sell it to you without one? That is, is it contrary to airport/management requirements?

I know at Swiss airports they must scan the boarding card(s), to weed out the wholly domestic passengers.

[highflyer40]

But there is nothing to stop them having price A for ex EU travellers and a separate price B for EU travellers is there not? So in reality the way it is is a savings of 20% for the non EU traveller because it heist they will just increase the price by the 20% to maintain profit.. It's not like you can shop around, you are a captive audience

[Heathrow Harry]

I posted a while back on another thread about seeing a young Scandinavian guy get to the front at T5 to buy something like a bottle of water and they asked him for his BC - he didn't shout but said he'd "have to find it" - slowly unpacking his enormous carry-on rucksack one item at a time as the queue grew, and grew.... and grew....

Eventually the chechout girl siad "here - pay and just go"

If we make a habit of loading up the wire basket and getting to the checkout and then saying

"oh dear - I can't find my card - I'll just have to leave this basket here"

they might get the message

[Capot]

does anyone know the consequences of simply refusing to proffer a boarding card?I refuse to produce it on the grounds that it is unnecessary. Sometimes the staff say that they are not allowed to process the transaction without it, but they usually give in to get rid of you.

Of course, WHS now wants everyone to use their dreadful self-checkouts, in which a boarding card is a necessary step towards completion. I go for the counter, but if I'm forced to use the checkout I use an FR card from a previous flight, in the admittedly faint hope that WHS will get done for VAT fraud by using the same details mutliple times to reclaim VAT.

On the wider issue of airport rip-offs, I can never understand why anyone buys the over-priced tat that is presented in these places. And I was responsible for setting one up at a UK regional. We sold spirits, fags and smells in the "duty-free" shop (all flights were domestic or EU, so duty was included) at 120% or more of the High Street price and 70% mark-up. We even sold over-priced holiday wear as "duty-free" (75% mark-up). For some reason people thought all this was a bargain, and sales were fantastic.

Much of what is described as "duty-free" in fact is not dutiable in the first place, in the UK at least. In some countries where the airport(s) have "duty-free" shops, there is actually no "duty" on anything.

If you have time (as I do; I always allow far too much time to get to the airport and through security) you can have an amusing time asking the shop managers what the duty is that their products are free of, according to the banner above the entrance. Most of them don't understand the question. This goes especially well at LHR.

[Metro man]

The airside 7-11s in Singapore sell GST free to passengers who are all international, but airport staff pay 7% tax as per a normal shop on the basis that their purchases aren't leaving the country.

Seems fair enough, the amounts involved aren't much as it's only a convenience store selling sweets, snacks, soft drinks etc.

[DaveReidUK]

There is absolutely no reason (other than greed) why, in this day and age, airport retail outlets should not be able to implement a dual pricing structure that allows them to pass on the VAT savings to customers who are bound for destinations outside the EU.

Of course the retailers would have to come up with a suitable name for the scheme. Hang on, perhaps they could call it "duty-free". :O

[crewmeal]

What are the prices like at the exit customs points at various airports? Last time I passed through T3 you could buy 2 x 1litre Baileys for £22 after clearing customs.

[ZFT]

Carton of cigarettes at BKK 9 GBP (with 20% airline discount) at both departure and arrivals

[GemDeveloper]

I have long ago stopped buying at Duty Free outlets in airports… I suspect that if more people knew what a Duty Free price really should be, they would stop too…

When our illustrious Chancellor of the Exchequer announced a reduction in duty on Scotch whisky in this year’s budget, The Scotsman newspaper obligingly gave some illustrative numbers:

Duty payable on a 70cl bottle of Scotch whisky at the average price of £12.90 has been reduced by 16p, from £7.90 to £7.74, with the total tax burden, including VAT, now standing at £9.89, or 77 per cent of the average price of a bottle, down from 78 per cent.

So if that bottle was sold Duty and VAT free it would be sold at £3.01; a price that includes all the wholesale and retail margins.

Anyone able to buy a 70cl bottle of Scotch for three quid at their airport? Sounds like it’s only those at sea with Grey Funnel Line who might get that proper price.

Two other observations. Firstly, long may those foolish enough to imagine that Duty Free shops offer enormous bargains continue to patronise them, as the vast margins flow back via franchise and other fees to the airport operators who thereby don’t have to keep racking up their landing fees. If Duty Free sales to the foolish dried up, we’d all be paying higher ticket prices. And secondly, I observe that most of the brands of spirits sold these days are ‘premium’ brands rather than the ‘cooking’ brands that one might buy at one’s local supermarket, and thus it’s almost impossible to compare prices. Go figure.

[PAXboy]

Also in the article I linked to:
Another popular airport franchise that requires boarding cards to be shown is WHSmith. While books and magazines do not attract VAT the company confirmed it did not pay the tax on other products and claimed duel pricing was a “practical impossibility”. If I recall correctly,UK Duty Free used to have dual pricing?

[Dairyground]

T250:

Airports are for travelling, not shopping


Many of us would like to believe this, but experience appears to show that airport managements think otherwise.

The planes are just a gimmic to get the punters in.

And to many others ;
Taking 20%VAT off the price of something would result in a reduction of 16.666% (one sixth), not 20% (one fifth).

[ExXB]

Dual pricing is not a practical impossibility, even Bob's nephew could do it. Their are cash systems around here that will give you a choice of euros or francs.

Dual signage would be more difficult, but hardly.

No, price everything free of VAT with a big sign that says VAT will be added for customers with boarding cards for EU destinations. The American/Canadian cousins do this everyday with their sales taxes.

[flydive1]

One issue might be if locals buy something, even if going outside EU, it would not really be exported.

If you buy a new camera while flying out, you will most probably bring it back into the country.

[farci]

@PAXboy If I recall correctly,UK Duty Free used to have dual pricing?
AMS still does!

[Capot]

What are the prices like at the exit customs points at various airports? Last time I passed through T3 you could buy 2 x 1litre Baileys for £22 after clearing customs.Hmmm....TESCO sells 1 litre Baileys for £20.00 (http://www.tesco.com/groceries/product/details/?id=255249782), so I suspect that what you saw is a loss leader, and may be temporary.

I would imagine that they need to offer prices like that to sell anything at all.

In any event, those land-side shops operate under precisely the same tax regimes as any high street shop. It makes no difference that they located at the exit of, but not in, the Arrivals area.

[ExXB]

Cabot,
At the shop at Geneva, just before baggage claim, prices remains free of Swiss VAT and, perhaps, other Swiss excise taxes. But 95% of all flights into Geneva are international. (And if you can't provide a boarding card for an int'l flight - you are out of luck) (This does not mean that the prices are any cheaper - this is Switzerland!)

But the same principle should apply to these shops at EU airports. If you are arriving from a non-EU country you should be paying the price free of VAT (and some excise taxes), but if you are coming in from another EU country you pay full whack!

If AMS can have duel pricing (thanks farci) why can't LHR?

Any other EU airports do dual pricing? We should be supporting those.

[ATNotts]

ExXB

No, price everything free of VAT with a big sign that says VAT will be added for customers with boarding cards for EU destinations. The American/Canadian cousins do this everyday with their sales taxes.

Total common sense - it'll never catch on in rip-off Britain!

[seafire6b]

“If airport shops aren’t going to pass on their VAT saving, we should refuse to show our boarding cards."

Link to article in today's Independent newspaper:

Air travellers refusing to show boarding passes at airport shops after news that the information is used by stores to avoid paying VAT - Home News - UK - The Independent (http://www.independent.co.uk/news/uk/home-news/air-travellers-refusing-to-show-boarding-passes-at-airport-shops-after-news-that-the-information-is-used-by-stores-to-avoid-paying-vat-10449107.html)

[Need to Know Basis]

I am shocked it took so long for the travelling public to realise what a rip off it all is be it Duty Free or not. Last time in OSL for the day - I checked the price of Cafe Creme mini cigars at LGW. A tin of 20 cigars x 5 tins was 36GBP. In OSL it was 28EUR.........luckily I bought then in OSL. Norway being outside the EU and true Duty Free ! Bizarre ! I have not bothered buying anything at all when passing through London`s finest aiports. The whole experience is awful. Walking through some winding yellow brick road through a shopping mall and try to get to the end to where the gates are. And glancing as to the pricing thinking it is cheaper on line and it gets delivered to your door !

Avoid all so called Duty Free at London Airports or be prepared to be shaked down.

[ExXB]

Don't forget, it is not just the shops. On board sales on flights to cities outside the EU have exactly the same prices as flights within the EU. They too are ripping you off.

Some airlines offer duty-free sales on some goods on these flights, but the cost of buy-on-board remains the same.

I don't accept the argument duel pricing is too difficult. Simples, take 16.6% off the gross price. My phone has got a calculator and I can figure that out in a second.

[Octopussy2]

My experience to date:

[locate item to buy, hand it over, proffer means of paying]

"Can I see your boarding pass?"

"I'm sorry, I don't have it handy"

[transaction completes. Sometimes they ask where you're flying to].

I think on one occasion when I was feeling particularly grumpy I just said "no". That was fine too.

This is UK airports. I've never been daft enough to buy anything at Geneva.

[PAXboy]

There are two letters about the VAT scam in The Independent today. There may be some in other papers but this is the one I read: Rather than quoting them, this link is to the online page as I presume they are copyright. Scroll down past Corbyn and others to the sub headline 'VAT rip-off at the airport'

Letters: Jeremy Corbyn, the Labour recruitment tool - Letters - Voices - The Independent (http://www.independent.co.uk/voices/letters/letters-jeremy-corbyn-the-labour-recruitment-tool-10449617.html)

[ExXB]

So we have learned that Bordeaux and Amsterdam's shops have duel pricing, any others?

[DaveReidUK]

So we have learned that Bordeaux and Amsterdam's shops have duel pricing

Sounds like you're in with a fighting chance if you shop there.

[ExXB]

Ooops, damn predictive text ...

[PAXboy]

Your predictive text was right, ExXB. it must have been thinking about UK airports and went into fighting mode. (terrible attempt at humour, I'll get my hat)

[PAXboy]

The story has also reached The Daily Telegraph
Airport VAT revolt: Thousands refuse to show boarding passes to shops - Telegraph (http://www.telegraph.co.uk/travel/travelnews/11796026/VAT-revolt-as-thousands-refuse-to-show-boarding-passes-to-airport-shops.html)

and today The Indy states:
Airport VAT scam: Treasury ministers demand an end to rip-off charges as grassroots passenger rebellion gathers pace - Home News - UK - The Independent (http://www.independent.co.uk/news/uk/home-news/airport-vat-scam-treasury-ministers-demand-an-end-to-ripoff-charges-as-grassroots-passenger-rebellion-gathers-pace-10450819.html)

[meadowrun]

I never buy from any airport "duty-free" shop. I buy duty-free in-flight. Just do a price comparison. If I want some newspapers or chocs for the flight I get them at the bus station shop prior to heading to the airport. All other products should be purchased long before your flight. It involves planning. No big deal. Try a local pound store. Why you would wait until you got to the airport to get your precious moisturizer, I cannot fathom. I dislike with a passion the layout of so called duty-free shops after passing security - it's just a time wasting trap for the gullible.
At one period in my career I was involved in my airline's duty-free products operations. This was mid 80's. A miniature of scotch cost us $0.18 for duty-free sales.

[cockney steve]

Some 40 years ago, I had my first experience of "international" travel , - Ferry to the Irish republic. Iwas curious about the fabled "duty -Free" and duly investigated.
Savings were minimal, so I didn't bother.
On my next trip, I bought the maximum allowable, to take into the Republic, having previously established that spirits in the Republic , were about 3X "duty-free"price.( IIRC, allowance was 4 bottles)
My favoured customers were delighted with their gifts. Me- I returned to UK empty-handed.
buyer beware, indeed....you won't get me fighting over duel pricing, or even finding me debating the savings on dual pricing.
I resolutely refuse to pay "ransom" prices in any "closed" situation such as Events catering and drinks, airports, docks etc.
Yes, I'm tight and make sure that i'm not exploited by the greedy and unethical.

[meadowrun]

"The government should make it illegal for airport shops to keep VAT savings for themselves rather than passing them on to customers, the Retail Ombudsman has said. It follows news that some airport shops are reclaiming VAT relief intended for shoppers flying to non-EU countries after checking their boarding passes.
Ombudsman Dean Dunham said there was little he could do as the law stands.
Retailers have said they are following government rules.
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 the relief was intended to reduce prices for travellers, not be a windfall gain for shops." bbc


Sorry for waking you from your extended naps Dean and David.

[PAXboy]

I didn't think the story could continue to get any stupider but then, Corporate bosses are known for it ...
But now three of the big companies at the centre of the outrage have suggested they have never instructed staff to demand to see customers’ boarding passes. Whaaaaat?? :yuk:

Airport VAT scam: WHSmith, Boots and Dixons 'reminding' staff of boarding pass rules - News & Advice - Travel - The Independent (http://www.independent.co.uk/travel/news-and-advice/airport-vat-scam-whsmith-boots-and-dixons--reminding-staff-of-boarding-pass-rules-10451857.html)

[Davef68]

I've long wondered if the advertising of 'Duty and Tax Free' prices breaches consumer law on pricing and price advertising

[El Bunto]

But now three of the big companies at the centre of the outrage have suggested they have never instructed staff to demand to see customers’ boarding passes.

Ha, I assume they'll be reprogamming their self-service kiosks then? You know, the ones that say 'Scan boarding card to begin...'

[gdiphil]

If something is advertised as "tax free" and it is not sold as such, and charging the VAT, any of it, means it's not tax free, it would be the criminal offence of fraud, see the Fraud Act 2006. It would be a false representation with a view to gain or cause loss to another under section 2. This has to be done dishonestly of course. And if they didn't know it then, now they most certainly do know it is dishonest.
As for Duty this is different and is a Customs matter and my understanding is it is levied on the usual suspects ie booze, fags and perfume. I understand there is a HMRC requirement for the seller to ensure the passenger is leaving the EU, hence the boarding card must be produced.
Like a lot of posters here I have noticed the absurd high pricing in UK airports so these days I only buy water and a paper and occasionally a whisky I particularly want which is not available on the High Street.

[DaveReidUK]

If something is advertised as "tax free" and it is not sold as such, and charging the VAT, any of it, means it's not tax free, it would be the criminal offence of fraud, see the Fraud Act 2006.

Except that that's the exact opposite of what's actually happening.

Goods sold to passengers bound for non-EU destinations (with the boarding card as the evidence HMRC requires) are being sold tax-free, in that the retailer doesn't have to hand over one-sixth of the sale price as VAT to the Chancellor. The issue is that the retailer, instead of reducing the sale price accordingly to reflect the fact that there's no VAT element, simply charges the same as the VAT-inclusive price and pockets the 20% as extra profit.

Disingenuous, yes. Illlegal, almost certainly not.

[Mr Mac]

Just a little point to make. Most UK airports only make any money from duty free/parking/food out lets, as the airlines especially LOCO pay naff all in the way of landing charges. Just be careful what you wish for, as the big shinny birds which we all think are so important to an airport actually often generate little income. It is the shops/food/parking which finance these places. I have built a number of these world wide and you would be amazed on the amount of time and effort that goes into those 3 aspects of airport design in comparison with gates and runways etc. The designs at Man are already concentrating on retail space even at this early stage and this will dictate the look of the new terminals. For those who do not pay for anything at the airport good luck to you, I my self usually get Private Eye and coffee if not in a lounge but if every passenger limited their spend you would see many regional airports closing. To show how important this is look how airports will try hard to get bucket and spade flight to the canaries islands due to there Tax status which airports know from sales modelling generate more duty free sales than flights to many other European destinations. I know this as my wife was in quite a senior position for a large world wide aviation group, with a number of airports world wide some of which were in the UK. As she used to say to me its about foot fall through shops and parking for cars and based A/C, that,s where the money is.

[Metro man]

There's an advert in today's Telegraph from the airport authority showing a comparison with high street prices and how much you can save at Heathrow.

I remember back in the 1990s they had to run an advertising campaign after being caught selling "Duty Free" whisky for more than it cost in a supermarket.
Back in those days TV and newspapers were the main source of news, these days with social media and stories going viral everybody knows within a day or two.

With VAT at 20% we're not talking about rounding up a few pennies. Many shops in London have the tax free for tourists scheme and if your spending passes the threshold you can claim back the tax less an admin charge. You may need to reduce the number of shops you purchase from to keep individual receipts high enough and allow extra time at the airport, but you can shop at your leisure and have a far greater selection.

[PAXboy]

Aboslutely, Mr Mac. I agree that they have to make their money but it is the deception that is galling.

I also lay the blame on the govt that did the privatisation. They wanted to pretend that you could keep prices down by setting an unrealistic control. This was usual of govts as they said they wanted to privatise but then they also wanted to control and show themselves to be 'looking out' for the punter. Consequently, rental from shopping space became the big earner and, no surrprise, the corporates had to find ways of coming up with the cash.

Since all that happened 30 years ago - the media have 'forgotten' what was done. But, of course, not much will change.

[Metro man]

To advertise a "SALE" price in the high street, the goods must have been offered at a higher price for a continuous period of twenty eight days within the last six months.

The term "DUTY FREE" is highly misleading as it implies that the item is being sold for a price significantly lower than normal as no duty is being charged.

To qualify to be advertised "DUTY FREE" the goods should be offered at normal retail price less the amount of duty which would be charged if they were sold land side.

I have no objection to shops selling alcohol and cigarettes at the airport but unless the whole saving is being passed on to the customer the "DUTY FREE" signs should come down. Instead let them give comparison prices with the high street instead to show what savings if any are being made.

[ExXB]

I think there are three types of shops/services airside and different rules apply.

Bars/Resturants who sell goods for consumption on-site. Prices for these goods are not free of excise duty or VAT. They do not claim to be 'duty free'.

Shops selling Booze, nicotine fixes and Perfumes. These goods, if exported from the EU, are offered as 'duty free'. If so, it is required to prove you are leaving the EU. Showing your boarding card is mandatory. It may be possible to purchase these goods for EU travel but the taxes are added on. It is not necessary to show your boarding card. These shops claim to be 'duty free'

Other shops selling other goods. If they can prove the purchaser is leaving the EU the retailer is not subject to the VAT. To prove this the retailer needs to scan your boarding card. However there is no obligation for the passenger to allow this. These shops do not claim to be duty free.

There are hybrids of two and three above, where they claim to be duty free and do sell duty free goods to passengers leaving the EU. Their claim to be duty free is partially correct, but not all goods sold there are duty free.

It is the second group that is ripping us off. Knowingly selling goods at prices inclusive of VAT, when they are not required to remit the tax to the UK authorities if the passenger is exported the goods from the EU.

And then there are the airlines where they maintain a single price for onboard sales for all flights, inclusive of UK VAT, which is charged to all passengers including those on non-EU flights. Often the goods in their boutiques are referred to in the announcement as duty free (and quaintly as 'duty-frees) Now I don't buy on board, primarily because the value for money is nonexistant. But those that do are being royally ripped off.

[T250]

Airports in UK usually don't pay a business rate for lease of premises at an airport departure lounge, they pay a percentage of overall takings.

Therefore, unlikely airport operators will seem interested in this pricing issue as it will likely affect their bottom lines also. :}

Money makes the world go round :oh:

[Rawtenstall]

Dublin airport has duel pricing

A bottle of Absolut Vodka is €29 if flying within the EU; same bottle just €14 if flying outside the EU.

[farci]

For the first time, last night at EDI I was NOT asked for my boarding pass at retail outlets. Passenger power ?

[PAXboy]

Airport VAT scam: WHSmith could have pocketed £50m from ruse in just five years - Home News - UK - The Independent (http://www.independent.co.uk/news/uk/home-news/whsmith-could-have-pocketed-100m-from-airport-vat-ruse-in-just-five-years-10464544.html)

[cockney steve]

Dublin airport has duel pricing

You mean you have to fight for a sensible price?

ARRRGGGGHHHHHHH DUAL...as in 2 ...... DUAL, ok?


A bottle of Absolut Vodka is €29 if flying within the EU; same bottle just €14 if flying outside the EU.

That represents ~ a 53% discount
but the Vat and Duty are considerably more, so they are still creaming-off an inflated margin.
Don't forget, the airport operators have a vasted interest in the whole ripoff....their rental demands are based on how much their tenants can fleece the punters for.....likewise the local Authority can base the valuation for Rates, on how lucrative the site is....witness the debacle over the ransomed Jodel....there is a massive difference in the rates on an active airport and the same piece of Real Estate, not being used for that purpose.

[PAXboy]

WH Smith appear to be accident prone (that's the polite word): WHSmith accused of exploiting vulnerable patients over prices in its hospital stores - Home News - UK - The Independent (http://www.independent.co.uk/news/uk/home-news/whsmith-accused-of-exploiting-vulnerable-patients-over-prices-in-its-hospital-stores-10470036.html)

[WHBM]

WH Smith appear to be accident prone (that's the polite word):
Yes. But in a way the retailers are just bystanders in the situation. The hospital, just like the airport, lets out the retail concessions to the highest bidder. The same applies to car park operators and similar services at both types of places. So the main organisation looks to skim sometimes millions from their retail concessionaires, and then looks the other way when there is criticism because the branding is WH Smith or whoever.

[PAXboy]

A very good point WHBM. As evidenced by this (sort of related) information: Train station toilets making up to £2.3 million by charging desperate travellers to spend a penny - Home News - UK - The Independent (http://www.independent.co.uk/news/uk/home-news/train-station-toilets-making-up-to-23-million-by-charging-desperate-travellers-to-spend-a-penny-10488188.html)

[PAXboy]

Our beloved Chancellor responds ...

George Osborne launches a review into airport shops that fail to pass on VAT savings | UK | News | The Independent (http://www.independent.co.uk/news/uk/george-osborne-launches-a-review-into-airport-shops-that-fail-to-pass-on-vat-savings-a6791266.html)

... methinks he'll do more about this than corporate tax evasion.

[ExXB]

... I hope he doesn't overlook the airlines.

[PAXboy]

The airlines will sort something out. WH Smith and others will find it more difficult.

[ExXB]

Actually it's just needs some programming to deduct the VAT from the retail price, when an ex-EU boarding card is presented. Or if on an ex-EU flight. A couple of signs in the shops explaining the situation or some notes on the airlines price lists.

Simples.

[WHBM]

Cash registers in the US have always been perfectly happy to add sales tax (sometimes two) without any previous notification to the purchaser [illegal in the UK] so, given that most cash registers nowadays are standard electronic products made in China, it should be straightforward to put in a negative percentage associated with scanning a relevant boarding card.

[PAXboy]

Both ExXb and WHBM state what could be done. Since the practice should not happen under existing rules, it would appear (I sit to be corrected) that the Treasury only has to say, "Fix this and do so within 6 months" But having an 'review' is so much nicer for the politicians as then they don't have to make a decision. :mad:

[T250]

...Similar to what they do with their 'inquiry' into LHR/LGW expansion! :}:hmm:

Seems anything aviation related the government does some :mad: review or investigation which ultimately wastes time, money and ends in nothing.

[419]

Cash registers in the US have always been perfectly happy to add sales tax (sometimes two) without any previous notification to the purchaser [illegal in the UK]

In the UK when the sales are business to business transactions, it's fairly common for displayed prices to be shown exclusive of VAT and for the tax to be added on at the till so I can't see any reason why the airside tills couldn't be programmed to deduct the VAT before the final price is shown.

[ExXB]

Thinking about it, the systems are already programmed.

If an EU boarding card is presented, the system allocates the net price to an earned revenue account and the VAT amount to a Tax account to be submitted to the government. An EX-EU boarding card would trigger a similar split, but the VAT going to the pockets of the greedy slime-buckets running these companies. (Airlines included)

[fdcg27]

This is an interesting point and may show why airport pricing for a wide range of goods is as high as it is.
There is a certain Caribbean airport we've passed through half a dozen times over the past decade.
Up until about six years ago, the concourse shops offered really sharp pricing on booze and cigarettes.
That all changed one day and prices are now more in line with those found in the states.
There are still deals to be had on a few items, particularly the inevitable local rum, but the overall potential savings are pretty well gone.
Could it be that the airport operator saw an opportunity to increase lease rates as leases came up for renewal and the retailers followed with increased prices?
We tend to blame the stores, but they operate only under the hand of the owner of the premises.

[Heathrow Harry]

prices in Oslo airside are lower than in country (could they be higher :{:{:{???) but are still wayyy above a proper "duty free" price

[Katamarino]

I once tried to buy something (a child's toy) in Schiphol on arrival; you walk through the same area as the departing passengers. The shop absolutely refused to serve me without a boarding card for a departing flight. :mad:

[PAXboy]

Don't get too excited by:
The Independent's campaign pays off for airline passengers as WHSmith hands back VAT to travellers | Travel | The Independent (http://www.independent.co.uk/travel/the-independents-campaign-pays-off-for-airline-passengers-as-whsmith-hands-back-vat-to-travellers-a7141776.html)

as:
At airport branches of WHSmith, passengers flying beyond Europe will get a discount – but only for items costing £6 or more.

[PAXboy]

The Independent has followed up on this story:

Boots airport stores to stop charging VAT on items after being caught in tax rip-off | The Independent (http://www.independent.co.uk/life-style/christmas/travel/boots-airport-stores-vat-stop-charging-products-duty-free-sale-discounts-heathrow-gatwick-stansted-a7628876.html)

[ExXB]

And the airlines, including BA now, continue to rip off passengers on their non-EU flights.