Will you show an airport retailer your boarding pass at the checkout after reading this?
Thousands of passengers are refusing to do just that after it was revealed that shops are using that information to claim back the VAT on the products.
Retailers have admitted that customers are not required by law to show their boarding passes when making a purchase (as many had believed) but the real reason is that the shops are using passengers’ details to claim back VAT on purchases made by customers flying to non-EU destinations. This allows retailers to save millions of pounds in VAT, even when they don’t offer customers a discount on products at the airport.
A study by the Telegraph showed that 90% of over 29,000 readers felt that they had been misled over the practise and have now joined a growing movement of customers who refuse to hand over their passes when requested.
“Handing over your boarding pass at the airport shop, even if you're buying nothing more than a copy of The Telegraph, has become practically second nature – but I bet very few people realised why retailers can be so insistent,” said Nick Trend, Telegraph Travel’s consumer editor. “And no wonder – the biggest retailers must save millions in VAT each year. But surely it’s those passengers flying outside the EU that ought to be making the savings?”
Treasury minister David Gauke has also joined the debate, saying that VAT relief at airports is intended to reduce prices for travellers, not to boost company profits.
What do you think? Is it fair for retailers at airports to claim back the VAT on your purchases?
