The chancellor has announced the government will launch a review into airport sales to make sure VAT savings are being passed on to the consumer.
The chancellor has announced the government will launch a review into airport sales to make sure VAT savings are being passed on to the consumer. HM Treasury reports that some airside retailers are currently keeping up to an estimated 50p of every £1 of potential VAT savings, instead of passing those savings on to shoppers. The Treasury has tasked HMRC to review airside VAT-free shopping to ensure that shoppers share more of the benefit in future. The review is expected to be completed by early 2016 and will also cover all other airside shopping taxes. It will consider ways to ensure that prices reflect VAT savings, as well as savings on duty.
Osborne said that ‘many people could be paying over the odds for their purchases because the government’s VAT concession isn’t passed on’. He added: ‘VAT relief at airports is intended to cut prices for travellers – not be a windfall gain for shops. This is simply unacceptable.’
The chancellor has announced the government will launch a review into airport sales to make sure VAT savings are being passed on to the consumer.
The chancellor has announced the government will launch a review into airport sales to make sure VAT savings are being passed on to the consumer. HM Treasury reports that some airside retailers are currently keeping up to an estimated 50p of every £1 of potential VAT savings, instead of passing those savings on to shoppers. The Treasury has tasked HMRC to review airside VAT-free shopping to ensure that shoppers share more of the benefit in future. The review is expected to be completed by early 2016 and will also cover all other airside shopping taxes. It will consider ways to ensure that prices reflect VAT savings, as well as savings on duty.
Osborne said that ‘many people could be paying over the odds for their purchases because the government’s VAT concession isn’t passed on’. He added: ‘VAT relief at airports is intended to cut prices for travellers – not be a windfall gain for shops. This is simply unacceptable.’
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