Trade body joins protest against ‘rip-off’ airport shops
Trade body UKinbound has added its voice to the campaign to force airport shops to pass on VAT savings to non-EU passengers.
The association says the issue, which has been raised by politicians and widely reported in the consumer press this week, is not helping the perception of Britain as an expensive destination.
CEO Deirdre Wells OBE said: "We are very concerned to hear that some retailers are not passing on the VAT refund which is due to visitors from outside the EU.
"The UK already suffers from a perception that it is an expensive destination – and this is not helping.
"Retailers need to recognise the important contribution which inbound visitors bring to the UK and make them feel welcome, not pocket the tax refund which is rightfully theirs."
Some travellers have begun refusing to show their boarding cards in airport shops as it emerged that some retailers were collecting millions of pounds in VAT discounts without passing on the savings.
Rather than bringing down prices, boarding card information is being used by retailers to get around rules on paying 20% VAT on goods sold to people going outside the European Union.
In the latest development, the Retail Ombudsman has called on the government to make it illegal for airport shops to keep the VAT savings.
Ombudsman Dean Dunham said there was little he could do under the current law as retailers argue they are following government rules.
Despite many travellers believing otherwise, it is not compulsory to show your boarding pass at airport shops like WH Smiths and Boots.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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