Do you know why airport retailers ask for your boarding cards?

Airport retailers have been accused of using information from traveller’s boarding cards, to claim millions of VAT back without the traveller actually receiving the saving.

It’s been reported that only a low amount of people actually realise that this process is so that the store can claim back 20% VAT on the goods which are sold to passengers travelling outside the EU.

When you are purchasing things which are advertised as tax free, the 20% saving, is not always passed on to the customer – according to the Independent.

Boots have been found as the worst offender, as the Independents research, shows Boots charges the same price in an airport, as they do on the high street; rather than reducing the price of the products by 20%, they take the different in their own pocket.

A spokeswoman for Boots has confirmed that they scan boarding passes to ensure that they get an “accurate report of VAT”, however she did state it is not compulsory for the traveller. HMRC have also confirmed that travellers do not have to hand over their boarding pass.

Some other airport retailers were offering some reductions, however they were only small and keeping the rest of the profit they were making.

In World Duty Free, the Independent research shows a Clarins Double Serum, 30ml was priced at £45.80, even though the product is available for less on the high street and the 20% (£9.16) VAT saving for the retailer.

Telegraph Travel’s Consumer Editor, Nick Trend states “Most travellers now hand their boarding passes without a second thought, however not many travellers are aware of why the retailers are so insistent.”

“The biggest retailers must save millions in VAT each year. But surely it’s those passengers flying outside the EU that ought to be making the savings?”

WHSmith have claimed that charging 20% discount for non-EU travellers is “practical impossible”. However, Harrods in Heathrow sells all its products VAT free – they have clearly found a way!

So, next time you are travelling, will you hand over your boarding pass so the retailers can pocket themselves an extra 20%? Let us know what your thoughts are.