Boots will now ask for boarding cards in airport shops – but you WON’T get charged VAT if flying outside the EU
Britain’s biggest chemist chain bows to pressure to pass on tax savings to customers
BOOTS has agreed to end its VAT scam in airport shops by giving refunds of the tax to on purchases over £5.
Customers shopping in the chemist chain’s 29 airport shops will now be asked to show their boarding passes and VAT will be given back to eligible travellers on VATable items.
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.
It means that for a £6 bottle of suncream, £1 goes to the retailer instead of being knocked off the customer’s bill at the till.
Asif Aziz, from Boots UK, said: "Over the past year we’ve been carrying out a comprehensive review of VAT relief concession at these stores to find the right solution to meet customers’ needs, while keeping our prices the same great value as in our high street stores.
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.
“Today we will introduce a new scheme in which customers travelling outside the EU will not pay VAT on VATable items which are priced at or above £5.”
Travellers can refuse to show their boarding pass in airport shops. But if they are travelling outside of the EU, then they will need to show it to claim back the VAT at the checkout.
Some stores, including Harrods, already pass on VAT savings to customers.
Last year, WH Smith agreed to give refunds to shoppers flying outside the EU on purchases over £6.
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