WHSmith becomes the first airport retailer to give back VAT to customers who are travelling outside the EU
This clip from the BBC RADIO 5 live Breakfast show features Dean Dunham highlighting the news that WHSmith is to give back VAT to customers who are travelling outside the European Union (EU).
Did you know?
When you are asked for your boarding pass at an airport shop, it’s not for security purposes, it’s so that the retailer can claim back the VAT on the goods you have purchased.
Airport retailers don’t have to pay the 20% VAT on goods sold to customers travelling outside the EU so when this news hit the media last year, there was a backlash from consumers and following a government investigation, WHSmith has become the first airport retailer to give back VAT to customers who are travelling outside the EU.
Dean Dunham highlights the backlash from consumers as they became aware of the boarding pass saga last year:
“When this hit the media it came on our radar in a very big way because consumers were very upset and quite rightly so because the government gave a concession to retail VAT in airports,” Dean explains. “That concession was all about, the spirit of the concession, putting money back into the consumers pocket, not the retailer’s.”
Dean welcomes the news that WHSmith has become the first airport retailer to give back VAT to passengers.
“Well done to WHSmith. They have done the right thing here.”
Will other retailers follow WHSmith in giving back VAT to passengers?
“I think they [airport retailers] will have to follow because the whole spirit of the concession was to benefit the consumer and not the retailer so I think they will have to follow WHSmith,” Dean Dunham said.
