WH Smith looking for boarding cards for small purchases

Anybody know why some shops at the airport look for boarding cards when buying small items such as water or magazines?

There was a fuss in the UK about this a few months ago and the result was that they were stopped from doing it. Apparently they were reclaiming some vat but not passing it on to the customer.

Recently when going through dublin airport I was asked for my boarding card in WH Smiths. They dont sell anything that might be 'duty free' so whats behind this practice? Are they diddling the consumer?

dudara

They can ask you, you don't have to provide.

As you said, it's to do with VAT reclamation. If they knows goods have left the country or left the EU, they can treat appropriately for VAT.

Duty is a different beast altogether.

Moving this to Taxation as its better suited there.

dudara

dudara wrote: »

They can ask you, you don't have to provide.
.

Not so simple. They have machines and if you dont provide your boarding card, the process stops until an assistant arrives. Some assistants automatically wave something under the bar code reader but last time I saw one insist that a card be provided.

dudara wrote: »

As you said, it's to do with VAT reclamation. If they knows goods have left the country or left the EU, they can treat appropriately for VAT.

So basically they are charging the consumer the incorrect rate of vat and pocketing the difference??

Surely there is no justification for this. Its not like airport prices are actually cheaper than elsewhere.

AndyBoBandy

So by not giving them a boarding card to scan, they can't claim the VAT back from Revenue?
Thus more money would stay in the tax purse?

AndyBoBandy

AndyBoBandy wrote: »

So by not giving them a boarding card to scan, they can't claim the VAT back from Revenue?
Thus more money would stay in the tax purse?

It seems so......

I wouldnt mind if they passed the vat to the customer but they dont, if anything prices are higher there.

BrokenArrows

Deleted User wrote: »

Not so simple. They have machines and if you dont provide your boarding card, the process stops until an assistant arrives. Some assistants automatically wave something under the bar code reader but last time I saw one insist that a card be provided.


So basically they are charging the consumer the incorrect rate of vat and pocketing the difference??

Surely there is no justification for this. Its not like airport prices are actually cheaper than elsewhere.

Yes the shops are pocketing the difference. There was a bit of a spree of complaints on social media last year about UK airports doing this, but it quickly fizzled out and nothing came of it.

In reality the shops should be discounting you based on where you are going. But they are not doing this.

L1011

Some airport stores sell items at below the cost they'd otherwise charge (not necessarily below cost, or even vaguely close to) on the basis of getting the VAT back on the non-EU flights. Dixons being cheaper in the airport for laptops and cameras than their on-street equivalents is one of these cases.

Considering how dear WH Smith travel outlets are, they certainly aren't doing that!

BrokenArrows

BrokenArrows wrote: »

Yes the shops are pocketing the difference. There was a bit of a spree of complaints on social media last year about UK airports doing this, but it quickly fizzled out and nothing came of it.
.

I understand it got the practice banned in the UK, or else the shops stopped doing it?
Revenue should wake up here. This money isn't the shops to pocket.

AndyBoBandy

Deleted User wrote: »

I understand it got the practice banned in the UK, or else the shops stopped doing it?
Revenue should wake up here. This money isn't the shops to pocket.

And if we still can't get it back ourselves, I'd rather it stay in our economy, as opposed to being scooped up by a HQ somewhere thats not Ireland.

Dardania

Deleted User wrote: »

dudara wrote: »

They can ask you, you don't have to provide.
.

Not so simple. They have machines and if you dont provide your boarding card, the process stops until an assistant arrives. Some assistants automatically wave something under the bar code reader but last time I saw one insist that a card be provided.

dudara wrote: »

As you said, it's to do with VAT reclamation. If they knows goods have  left the country or left the EU, they can treat appropriately for VAT.

So basically they are charging the consumer the incorrect rate of vat and pocketing the difference??

Surely there is no justification for this.  Its not like airport prices are actually cheaper than elsewhere.

DAA put out a statement last year clarifying that one is not obliged to showing boarding pass, unless duty is involved: http://www.irishtimes.com/business/retail-and-services/passengers-not-obliged-to-show-boarding-cards-in-airport-shops-1.2314584

Dardania

Deleted User wrote: »

dudara wrote: »

They can ask you, you don't have to provide.
.

Not so simple. They have machines and if you dont provide your boarding card, the process stops until an assistant arrives. Some assistants automatically wave something under the bar code reader but last time I saw one insist that a card be provided.

dudara wrote: »

As you said, it's to do with VAT reclamation. If they knows goods have  left the country or left the EU, they can treat appropriately for VAT.

So basically they are charging the consumer the incorrect rate of vat and pocketing the difference??

Surely there is no justification for this.  Its not like airport prices are actually cheaper than elsewhere.

DAA put out a statement last year clarifying that one is not obliged to showing boarding pass, unless duty is involved: http://www.irishtimes.com/business/retail-and-services/passengers-not-obliged-to-show-boarding-cards-in-airport-shops-1.2314584