Airport VAT ripoff?
Discussion
Let me know if what I think is happening, is happening.
If you buy a mid range iPhone on the high street, the price is £799. Inc VAT obv. So it's £666+£133 VAT, to the nearest pound.
I'm about to depart the EU at Heathrow airport and I just popped into Dixons. They are selling the £799 high street priced phone for £769. £30 cheaper than the high street.
But on enquiring, Dixons will not give you a VAT receipt or anything with their VAT number on it. Are they selling an ex-VAT phone which should cost £666, for £769, not remitting any VAT to HMRC and trousering an additional £103 per sale?
If you buy a mid range iPhone on the high street, the price is £799. Inc VAT obv. So it's £666+£133 VAT, to the nearest pound.
I'm about to depart the EU at Heathrow airport and I just popped into Dixons. They are selling the £799 high street priced phone for £769. £30 cheaper than the high street.
But on enquiring, Dixons will not give you a VAT receipt or anything with their VAT number on it. Are they selling an ex-VAT phone which should cost £666, for £769, not remitting any VAT to HMRC and trousering an additional £103 per sale?
Dr Jekyll said:
Why is it a scam? They advertise an iPhone for £769, you pay £769 and walk away with an iPhone.
correct - it's not a scam in the sense that the price is what it is with no hidden extras. What is the scam is that whole 'VAT free' thing which it most obviously is not. The other scam as best as I can make out is that you are 'required' to show your boarding pass, which, from what I can tell is complete BSFair enough, I thought you wanted it as you said they wouldn't give you anything with their VAT number on it.
I'd raise it with their customer service team or similar to confirm it's not just a cock-up at store level. Very easy for "We don't give VAT receipts unless it's a specific request, there's this process for it" to turn into a straight "We don't" when you've got someone on minimum wage (who frankly can't be arsed with it) dealing with the query.
Report the refusal to HMRC if you don't get anywhere, if enough people report it then they'll take an interest.
I'd raise it with their customer service team or similar to confirm it's not just a cock-up at store level. Very easy for "We don't give VAT receipts unless it's a specific request, there's this process for it" to turn into a straight "We don't" when you've got someone on minimum wage (who frankly can't be arsed with it) dealing with the query.
Report the refusal to HMRC if you don't get anywhere, if enough people report it then they'll take an interest.
This has been publicised in mainstream media fairly recently, and nothing was done. Not enough people will refuse to show their boarding card, so the retailers will continue as they are.
I never buy anything at an airport unless its unavoidable. Airports are miserable life-vacuums devoid of any pleasure.
I never buy anything at an airport unless its unavoidable. Airports are miserable life-vacuums devoid of any pleasure.
iwantagta said:
WHS now discount the VAT back to customers on a boarding card scan to a non VAT country.
Regarding Dixon's price being almost as high for an apple product in an airport;
What do you think the cost of business is for Dixons to have a site in Heathrow Airport Vs Warrington High Street?
Probably comparable with their Regent street store.Regarding Dixon's price being almost as high for an apple product in an airport;
What do you think the cost of business is for Dixons to have a site in Heathrow Airport Vs Warrington High Street?
I note it is no cheaper if you buy online where they can site their warehouses in the cheapest location
voyds9 said:
iwantagta said:
WHS now discount the VAT back to customers on a boarding card scan to a non VAT country.
Regarding Dixon's price being almost as high for an apple product in an airport;
What do you think the cost of business is for Dixons to have a site in Heathrow Airport Vs Warrington High Street?
Probably comparable with their Regent street store.Regarding Dixon's price being almost as high for an apple product in an airport;
What do you think the cost of business is for Dixons to have a site in Heathrow Airport Vs Warrington High Street?
This makes it critical to not only be selling a lot but also at a reasonable margin else all profit gets swallowed up by the % of the airport.
In addition staff - especially airside staff who need security clearance - tend to earn slightly more.
Getting product into store - all needs to be security scanned - this has to go through a defined consolidation centre at a cost to the retailer. An expensive cost as the scanning company has had to bid from the airport for the work and guarantee to pay them £££££ as well!
Probably someone on here who knows better than me on this!
The VAT is a rip off...
Here in Aus Im a non resident, so I can but my iPhone at $1500 or whatever it is and then when departing the country I can go and claim all the VAT (called GST) back in the TRS (Tourist Refund Service), so instead of buying in the airport, go buy at the place you visit and claim it all back.
So I guess if I technically do it in Finland next month, I can claim 25% (VAT) on an iPhone and bring it back to Sydney.
Here in Aus Im a non resident, so I can but my iPhone at $1500 or whatever it is and then when departing the country I can go and claim all the VAT (called GST) back in the TRS (Tourist Refund Service), so instead of buying in the airport, go buy at the place you visit and claim it all back.
So I guess if I technically do it in Finland next month, I can claim 25% (VAT) on an iPhone and bring it back to Sydney.
Du1point8 said:
The VAT is a rip off...
Here in Aus Im a non resident, so I can but my iPhone at $1500 or whatever it is and then when departing the country I can go and claim all the VAT (called GST) back in the TRS (Tourist Refund Service), so instead of buying in the airport, go buy at the place you visit and claim it all back.
And if you're a non-EU resident visiting the UK, there's a myriad of shops in High Streets offering tax-free purchasing to you.Here in Aus Im a non resident, so I can but my iPhone at $1500 or whatever it is and then when departing the country I can go and claim all the VAT (called GST) back in the TRS (Tourist Refund Service), so instead of buying in the airport, go buy at the place you visit and claim it all back.
They have nice big stickers in the doors or windows, to help attract all that tourist money in...
How it works :
https://www.gov.uk/government/publications/vat-not...
I really don't like that they take away my bottle of water at security which forces me to buy a new one once I'm past that stage at a higher cost.
On a 8/9 hour flight I might want 2 bottles. Thus causing me to spend more. It's also more expensive inside the airport than outside. Not fair considering we can't go anywhere else.
On a 8/9 hour flight I might want 2 bottles. Thus causing me to spend more. It's also more expensive inside the airport than outside. Not fair considering we can't go anywhere else.
ashleyman said:
I really don't like that they take away my bottle of water at security which forces me to buy a new one once I'm past that stage at a higher cost.
On a 8/9 hour flight I might want 2 bottles. Thus causing me to spend more. It's also more expensive inside the airport than outside. Not fair considering we can't go anywhere else.
Or just ask the kind staff on the flight for water, they dont mind giving that out at all for free on long haul.On a 8/9 hour flight I might want 2 bottles. Thus causing me to spend more. It's also more expensive inside the airport than outside. Not fair considering we can't go anywhere else.
Du1point8 said:
ashleyman said:
I really don't like that they take away my bottle of water at security which forces me to buy a new one once I'm past that stage at a higher cost.
On a 8/9 hour flight I might want 2 bottles. Thus causing me to spend more. It's also more expensive inside the airport than outside. Not fair considering we can't go anywhere else.
Or just ask the kind staff on the flight for water, they dont mind giving that out at all for free on long haul.On a 8/9 hour flight I might want 2 bottles. Thus causing me to spend more. It's also more expensive inside the airport than outside. Not fair considering we can't go anywhere else.
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