Martin Lewis reveals the airport shops where you SHOULDN’T show your boarding pass
MARTIN Lewis has revealed the airport shops where you shouldn't show your boarding pass - and where it's worth handing it over.
The founder of the MoneySavingExpert website recorded a video at Gatwick airport earlier this week to highlight how regulations differ and how they could be confusing shoppers.
Airport shops are required by law to charge VAT on purchases made by shoppers travelling to a destination within the European Union, but those travelling elsewhere are exempt from the tax.
Two years ago retailers were exposed for making customers hand over boarding passes as a “security measure” when making purchases.
Instead, the information was used to keep VAT owed to customers flying outside the EU.
Mr Lewis said: “I want to answer one of those questions that people always ask me about travelling…
“When they ask for my boarding pass when I’m buying stuff in the airport, do I have to show them?”
“Well, the answer is no! In almost all the shops...with one big exception”.
He went on to explain how Duty Free shops are required to ask to see your boarding pass.
This is usually because of rules they must follow if you want to buy cigarettes or alcohol.
But Mr Lewis explained there’s no reason to show it in any other shop, unless you're flying to a non-EU destination and you know that they'll pay you back the VAT.
He added: “And the reason they’re asking you is if you show your boarding pass and you’re going outside of the European Union...well, then they can claim the VAT back.”
WHAT IS VAT?
VAT is a tax you pay when you buy goods and services in the European Union, including the UK. The charge is added on by retailers on the price you see on the shelf.
In the UK there are three rates of VAT. The standard rate is 20 per cent, which applied to most goods and services.
A reduced rate is payable on some items, such as women’s sanitary items and contraceptives.
While some items are exempt from VAT (known as the zero rate), these include, prescriptions, baby milk and some foods, including sandwiches.
“Now I believe they should be sharing that with you and they’re not.”
“So if they ask you, just say no. Why should they gain if we don’t”.
Some shops, including Boots, Harrods and WH Smith, now pass on VAT savings to shoppers - as long as they spend over a certain amount.
Earlier this year, Boots agreed to refund customers who spend £5 or more on qualifying purchases.
While WH Smith requires travellers to spend more than £6 before it will refund VAT.
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at money@the-sun.co.uk or call 0207 78 24516