[TominScotland]

Folks, get a life – does it REALLY matter if you are asked to show your boarding card, in the big scheme of things, like??????

[SimonS1]

Interesting thread on Flyertalk on this. It does indeed appear to be to do with VAT but not in the way fastphil explains it.

Most shops have one price at the airport. If travelling to a non VAT area then there is no VAT payable, However if travelling to a VAT area then the price is deemed to be inclusive of VAT which the retailer pays. That would also explain the comment in bugbear’s link from Boots that

“We are not required to account for VAT to HMRC for goods that have been sold to passengers flying to non-EU destinations. HMRC and the airports accept that this is general practice for all airport retailers. By asking for a customer’s boarding pass, we can ensure that our VAT accounting is correct and in line with HMRC’s requirements.”

In other words on a non VATable transaction the retailer will have a bigger margin.

If correct (if) that would explain why a BP is required for some purchases. However not in WHS where things like papers, snacks etc are not subject to VAT.

http://www.flyertalk.com/forum/british-airways-executive-club/1506370-t5-airside-requests-personal-information-when-buying-shops-2.html

[HarryMonk]

Interesting the reasons Boots give on Bug Advisor

“After looking into this matter, I would like to confirm that the purpose of scanning boarding cards in our airport stores is to ensure the accuracy of our accounting records. The information gained is used for a number of reasons. One such reason is that we’re very keen to ensure that our prices are competitive, and that we do not operate a dual pricing strategy between our High Street and Airport Stores”

If its not compulsory to show a boarding pass then why use this method to ensure accurate accounting.
There are other ways to ensure prices are competitive.
It does not take boarding passes to ensure Boots are not charging different prices at the airport compared to the local high street.

Secondly, in airside stores that do not operate dual pricing in such as way as a duty free store I assume all prices include VAT. Therefore if a purchase of a VATable item is made by a traveller going to a non EU destination in one of these stores they are paying VAT that need not be paid. Is it possible, I am not saying any store does this, by scanning a boarding pass a store can isolate those purchases and the VAT that has been paid on these and retain it?

[canucklad]

The Boot’s excuse is simply gobidily gook jibberish. Especially the bit about ensuring they have a parity pricing policy. The more my grey matter ponders this whole subject, the more I’m likely to conclude that its an exercise in accountancy.

And that they are not claiming back VAT, but in actual fact withholding VAT from HMRC. What is galling is the parity that Boot’s is talking about is achieved by basically withholding the 20% etc they’ve charged me at LHR when I’ve purchased the following…….

Bottled water
6 x Kit Kats
Couple of KP Nuts
Crisps
Irn Bru
Chocolate
Fridge magnets

I would realistically make the above purchase before heading back to BC. Without working out specific pricing ( I’ll keep it simple) , Lets say that it totals up to £24.00 .

On presenting my “YVR” boarding pass do I get charged only £20 ? Ehmmm no…I get charged £24, now if retailer is now able to proof that I wasn’t eligible to pay VAT, surely they’ve over charged £4 ?
So if the VAT point is correct by presenting your boarding card, you are in effect (if you’re a UK taxpayer) witholding money from yourself.

[fastphil]

HarryMonk is correct in my view and I apologise for my erroneous comment yesterday saying VAT is claimed back on purchases by the likes of WH Smith on travellers going beyond the EU. Rather than claim it back they don’t pay it in the first place but charge the same price and keep the difference (unlike the duty free outlet that charges 2 different prices).
Another way to look at this is to buy an iPad in Dixons and ask for a VAT receipt … They will only give you one if you produce a boarding card that proves you are traveling within the EU.

[MrMichael]

If it is the case that Smiths are not paying the VAT, then surely as they advertise VAT inclusive prices they are being dishonest. Are they operating within the law?

[PeterCoultas]

This thread shows why I NEVER buy in the so-called Duty Free airport shops.

The whole system is a con trick – try buying a decent whisky or brandy in an italian airport and you will find it at lower prices in italian shops. Much the same can be said of the UK – goodies at the airport are cheaper at TKMaxx – go to China and better quality (but fake?) handbags “similar” to “top” brands can be had for a few dollars. Buy your electronics in a US state that doesn’t charge 20% vat (or sales tax – Oregon) and you’ll find prices about 40% lower than in the airport so-called duty free.

Duty free c*** is best left where it is in the shopping mess that clutters up the airport – hopefully then we can get to lounges with a good selection of drinks and newspapers & on to our flights without problems.

[WillieWelsh]

In transit at LHR recently I enquired about the price of a litre bottle of Gordon’s Gin, I was traveling within the EU and the person I was meeting had asked for it particularly. It was on sale for £12 which is expensive compared to the usual EU price of €12.

It took the lady a few moments to establish that the price for an EU traveller was £32 a litre. I nearly fell over, it’s £16 in Sainsburys.

Needless to say I left it behind. Never mind rip off Britain, rip off Heathrow surpasses all previous experiences. I will never spend a penny in their shops again.

[SGJNI1961]

@ WillieWelsh
Perhaps the point is you were NOT in Sainsburys? Ex EU, 2X1Ltr Gordons = £24, in T5. Within the EU most standard spirits are cheaper at most destinations due to the UK taxes.

[DontTurnRight]

Having started this post way back in Jan 2013, it is interesting to know that it is still going and that if the recent Boots response is anything to go by, is likely to run for some time until a satisfactory explanation is given.

I confess to seeing a case for items such as booze and fags where there are different rules pertaining to different countries with regards to allowances, but I remain convinced that for most other purchases, this is simply a way of keeping more people employed, aggravating customers and adding an additional stress point in the journey from check-in to plane.

Perhaps BT could offer up a prize for the most credible and convincing explanation as to why this practice needs to continue, or better still an award to the first airport in the UK to abolish this preactice!

[ffidrac]

Have found a solution (well certainly at T5). If you use BA mobile phone boarding pass, the (annoying) self service scanners in WHSmiths can’t read them. It really annoys the person policing them, as the have to come over and put in a code, taking no details from the boarding pass. At Boots, I just say I’m happy to give them my flight number verbally, but not any other details on my boarding pass (and don’t let them try and scan it). Has worked every time so far

[BigDog.]

SimonS1 – 18/11/2014 11:23 BST; HarryMonk – 18/11/2014 11:38 BST

Simon Calder covered this on the BBC News this morning, providing an answer close to yours Simon & Harry.
As Euro destination and Worldwide are co-mingled the retailer uses the boarding card to identify non-European destined customers to pocket the equivalent VAT amount (already included in the price) for themselves. ie regardless of destination the price is the same to the customer.

Methinks the cashier merely follows a standard process regardless of the type of item/purchase.

Edit – Excellent to see you posting again FDOS – valuable insights and different view points are still proffered however fractious elements of the past have thankfully long gone rendering BT a far more pleasant forum.

[FDOS_UK]

The elephant in the room remains the data protection act, which requires organizations collecting personal data to display notices saying why, what data will be collected and other information.

The shops say they don’t collect personal data, but the (unencrypted) bar code on the boarding pass contains your name and FF #, perhaps more.)

How much do you trust the word of a shop assistant on a detailed IT matter? They have been given a line to repeat, but how true is it?

I will show the BP to the assistant, but will not let them scan it – so far, no-one has refused me, in fact this morning at Boots MAN the assistance manually keyed the fight number into the till, took all of 2-3 seconds.

I know that they use the information for VAT purposes and don’t mind that, but will not take even the smallest risk with my personal data.

[HarryMonk]

Unfortunately my thoughts of 18/11 have turned out to be true according to the article published in today’s Daily Mail

http://www.dailymail.co.uk/news/article-3190002/Airport-VAT-rip-duty-free-sales-nets-millions-pounds-shops-including-Boots-Dixons-WHSmith.html

Is this fraud? Is this theft?

I’m not a big user of any of these stores but now my suspicions have been confirmed my usage of these stores will be zero, airport or high street

[SimonS1]

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

[Author]

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