Treasury ministers have urged retailers with stores located in airports to pass on VAT savings to customers.
Travellers are asked to show their boarding passes at tax-free shops in UK airports so they can avoid paying 20% VAT on purchases made when flying outside the EU. However, an investigation by The Independent, published on August 8, revealed some retailers are keeping the extra money.
In an interview published today, financial secretary to the Treasury David Gauke told the newspaper: “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. We urge all airside retailers to use this relief for the benefit of their customers.”