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Old Dec 5, 2006, 10:22 am
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Smirnoff
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Join Date: Dec 2004
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T4 Tax free shopping - beware !

It's tax free prices for all at T4, so it doesn't matter if you are flying outside the EU (in which case the goods are sold without VAT) or flying within the EU. In this case you still buy at the tax free price, but the retailer swallows the cost of the VAT, so netting only 82.5% of the purchase price.

Obviously the retailer loses out if it sells to passengers flying in the EU. So... beware a certain electrical goods retailer, that has found an easy way to get around this.

I bought a few Christmas presents as I flew out to AMS on Sunday, taking advantage of the 17.5% discount and knowing the goods would have been bought duty-paid, as I was flying within the EU. Right? Wrong!

This dodgy retailer doesn't even ask for your BP, they simply put in the next non-EU flight, in my case JFK. I didn't notice till later that the till receipt has BA 54/JFK on it.

How I know this wasn't a mistake? Because I went back and bought something else, and was served by a different salesperson who did the same thing. In fact, the same flight number appeared on my receipt.

Not a big deal I guess, except technically I could probably have been liable for tax on those goods on the return to the UK.

Beware when buying bigger items that the EU destination does show on your reecipt, as proof that you have bought the goods tax paid.

Last edited by Smirnoff; Dec 5, 2006 at 10:51 am
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