bmi diamond club - LHR retail - EU prices

It seems to be the case that the only items where they charge a different price (or refuse sale) when travelling in the EU is cigarettes and alcohol.

[1st question] All other shops seem to charge the same price whether travelling outside the EU or not, are there any of the shops that do charge more if you're staying inside the EU (I'm thinking the high end shops)? - this is for personal use, not thinking about expenses as in question 2

Presumably the boarding pass check most shops do is so they know whether they'e liable for VAT on that transaction. So they'll make more profit outside the EU as they aren't liable for VAT but are charging the same.

[2nd question] If buying any electronics for a VAT registered company from (let's say) Dixon's Travel. As long as you're travelling inside the EU you'll be paying VAT on it so I guess there's no problems claiming the VAT back on the quarterly VAT reurn? Has anyone had any issues with this? If travelling outside the EU then you'd not be able to claim it back even though you're paying the same amount.

[1st question] All other shops seem to charge the same price whether travelling outside the EU or not, are there any of the shops that do charge more if you're staying inside the EU (I'm thinking the high end shops)?I seem to recall differential pricing at Hermes, but this was some time ago.

If buying any electronics for a VAT registered company from (let's say) Dixon's Travel. As long as you're travelling inside the EU you'll be paying VAT on it so I guess there's no problems claiming the VAT back on the quarterly VAT reurn? Has anyone had any issues with this? If travelling outside the EU then you'd not be able to claim it back even though you're paying the same amount.

I have done that several times before, buying at Dixons before flying within the EU, and your receipt will show VAT paid, which for business use can be claimed back. Also when flying within the EU, you can use the shop and collect service, so don't even need to take the goods with you.

I bought a £6k watch in T3 18 months ago (I rang up and pre-ordered it, for a 20% deposit).

I asked if they would give me a bigger discount if I was flying outside the EU that day, the assistant had absolutely no idea what I was talking about.

The bulk of the differential goes to BAA, I guess, in any event. The airport shops don't pay normal rent, they pay it based on sales. It is possible they pay, say, 10% on sales to EU pax and 30% on sales to non-EU departing pax.

The airport shops don't pay normal rent, they pay it based on sales. Without knowing the details I'd have taken a bet that their arrangement is like a typical "shop in shop" arrangement - i.e. they pay a base rent as well as the % of turnover.?

The boarding pass check is also used for marketing. Helps them analyse which flights, destinations etc. bring them revenue on what products.

The boarding pass check is also used for marketing. Helps them analyse which flights, destinations etc. bring them revenue on what products.

Yes it may give them data, but it is primarily financial - to know whether they have to pay the tax or can pocket it as further revenue.

Hence why you will often find staff accidentally putting in non VAT area airports.

[2nd question] If buying any electronics for a VAT registered company from (let's say) Dixon's Travel. As long as you're travelling inside the EU you'll be paying VAT on it so I guess there's no problems claiming the VAT back on the quarterly VAT reurn? Has anyone had any issues with this?

Dixons Travel stores are full geared up to produce separate VAT receipts if requested (or atleast they were two years ago, no reason to suspect they are not now).

No reaons for anyone else to have any problem with this, you have bought something an paid VAT

And indeed, nonEU corporate buyers can reclaim their VAT too (on exactly the same basis of them being a business), although they may choose to use a reclaim company as it is far easier.

What they are NOT geared up for is people from outside the VAT area but flying within it - they do not participate in the Retail Export Scheme, hence you can not fly LON-EDI etc, but at the 'airport' price paying VAT, then reclaim it. Because they don't participate in the scheme.

Yes it may give them data, but it is primarily financial - to know whether they have to pay the tax or can pocket it as further revenue.

Hence why you will often find staff accidentally putting in non VAT area airports.

So if it's a business expense I have to make sure they don't 'accidentally' type in GVA instead of GLA! :)