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9 Aug, 2015

UK airport VAT scam: Retailers pocketing millions from duty-free discounts – The Independent

Some of Britain’s top retailers are facing calls to be more honest with airport customers as they pocket millions of pounds in VAT discounts on duty free items without passing on the savings.

Many stores in airports across the UK now demand that passengers present their boarding cards at checkouts before paying for any goods. But that is not a legal requirement, and instead the information is being used by stores to avoid paying 20 per cent VAT on everything they sell to customers who are travelling outside the European Union.

Research by The Independent suggests the majority of these stores are passing little if any of the savings to customers, and instead are using the tax rebate to boost the profits of their airport franchises.

Source: The airport VAT scam: Retailers told to come clean after being accused of pocketing millions from discounts on duty-free sales – Home News – UK – The Independent