Originally Posted by
David1963
I realise that I am at risk of sounding like a stuck record here, so I shall try to keep it brief, but it can quite easily determine VAT status.
For a start, they can ask you if you are intending to export the goods and, if you answer no, then it can be assumed (quite correctly) that VAT is to be levied and paid to HMRC at the appropriate rate (just as any high street shop does in their VAT process). No need to see any documents or record any information (as far as I know, HMRC only need evidence where VAT is not levied, i.e. exported goods)
If you answer yes, of course, then they can get into the provision of other data to support and act as evidence of exportation of the goods.
I'm genuinely confused as to the distinction you seem to be drawing here (you may be right, but I don't understand at the moment).
Isn't it like this?
If a passenger is travelling to a country outside the EU, he is entitled by UK law to purchase goods duty and VAT free. In these circumstances, the retailer does not charge VAT on the sale.
If the passenger is travelling to a country in the EU, he is not entitled to purchase goods duty and VAT free and the retailer is required to charge VAT and duty on the sale, and in turn must pay the VAT to HMRC.
In order to know whether to charge VAT on the sale or not, the shop needs to know where the passenger is travelling to. The shop finds this out by asking to see the boarding pass and recording the flight number, which shows whether the passenger is travelling to an EU country or not.
If the flight number reveals an EU destination, the retailer charges VAT (unless the item is zero-rated) and pays the VAT to HMRC. If it doesn't show an EU destination, the retailer does not charge VAT.
Isn't the retailer entitled to look at a boarding pass to find out whether the passenger is travelling to an EU destination or not? Does it not need this information to prove to HMRC that a particular sale was duty free and that therefore no VAT is due on the sale?
I think this is right, but if part of it is wrong, I would be interested to know which part. You seem to draw a distinction between goods that are going to be exported and those that are not, and I don't follow why this is relevant.
What am I missing?
