This has been a prominent story in the news and I understand why people are upset at the fact that not all retailers were passing VAT savings onto customers.
According to HM Revenue and Customs, the VAT relief at airports is intended to reduce prices for travellers, not as a windfall gain for shops. While many retailers do pass this saving on to customers, it is disappointing that some are choosing not to. All airside retailers should use this relief for the benefit of their customers.
There is a legal requirement to present your boarding card at “duty free” shops. These premises are designated by HMRC as export shops, and as such have permission to sell duty-suspended goods to passengers. As part of this arrangement they require a passenger’s travel documents and itinerary.
By Patrick McLoughlin on October 27, 2015