T4 Tax free shopping - beware !
#1
FlyerTalk Evangelist
Original Poster
Join Date: Dec 2004
Posts: 11,924
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.
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
#3
Join Date: Aug 2003
Location: London, UK
Programs: BA Gold, BD Gold, PC Ambassador, SPG Gold
Posts: 4,001
I'm tempted to report this to the BBC or Sky News or one of the national newspapers. This is VAT fraud on a massive scale by one of the country's leading retailers.
#4
FlyerTalk Evangelist
Original Poster
Join Date: Dec 2004
Posts: 11,924
I just added the flight number in post no.1, as I checked the till receipts and they say :
Dest Code: JFK
Flight No: BA54
Thank you for your custom.....
followed by a warning that if your destination is outside the EU you may have to pay VAT when you return to the UK.
Funny thing is.... there is no BA54 to JFK (that's a JNB-LHR flight).
Two separate sales staff input the same fictitious flight number. Without even thinking about it.
Dest Code: JFK
Flight No: BA54
Thank you for your custom.....
followed by a warning that if your destination is outside the EU you may have to pay VAT when you return to the UK.
Funny thing is.... there is no BA54 to JFK (that's a JNB-LHR flight).
Two separate sales staff input the same fictitious flight number. Without even thinking about it.
#5
FlyerTalk Evangelist
Join Date: Aug 2000
Location: London and Zurich
Programs: AA, BA, Mucci: Sir Roger des Directions Routières, PCR
Posts: 13,609
Ah, these Saturday salesmen ...
One way around this if you want to be clean might be to use the leave-it-at-BAA facility - and change your mind at the last minute after they'd used the till. You'd have the satisfaction of knowing VAT is paid.
One way around this if you want to be clean might be to use the leave-it-at-BAA facility - and change your mind at the last minute after they'd used the till. You'd have the satisfaction of knowing VAT is paid.
#6
Moderator: GLBT travelers, India-based Airlines and India; FlyerTalk Evangelist
Join Date: Jan 2004
Location: Asia
Programs: Yes!
Posts: 15,512
#8
Join Date: Feb 2005
Location: England, though not on purpose.
Posts: 3,563
Put it this way, if I got stopped on the way into the UK to pay VAT on this I think it would be obvious to the Customs agent what had happened and the retailer would be in deep water, not me!
Actually uncle Smirn you may have unearthed something pretty serious here, clearly these staff are being trained to do this, perhaps you should go undercover and infiltrate them, then you could get to be on the 'telly
Actually uncle Smirn you may have unearthed something pretty serious here, clearly these staff are being trained to do this, perhaps you should go undercover and infiltrate them, then you could get to be on the 'telly
#9
Join Date: Mar 2002
Location: MEL
Programs: BA Gold; VA Velocity Gold; LH FTL; Marriott Gold; ICHG Platinum AMB; Hilton Gold
Posts: 5,393
Wonder if the staff get additional commission for selling products to passengers on non-EU flights? In any case this looks dodgy to me, and easy for them to do as the checks on the blue channel are pretty much non-existent, and the passenger would be able to prove their travel pattern.
#10
Join Date: Jun 2004
Location: SF Bay Area
Programs: UA 1K, Starwood/Marriott Plat, Others of little note
Posts: 1,148
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.
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.
#11
FlyerTalk Evangelist
Original Poster
Join Date: Dec 2004
Posts: 11,924
Imagine if I checked my receipts before I re-entered the UK (thank goodness I didn't ) and knowingly brought goods into the UK on which VAT had not been charged.
#12
Join Date: Jul 2006
Programs: SQ-PPS+8, BA-Mucci Diamente, Mucci Siegneur des Bains Chauds
Posts: 2,286
I'm sure you will voluntarily declare it later. In the meentime those £10 voucher thignies I have printed off, has anyone used them yet. You see I fancy one of those Jorge Jensen alarm clock thingies and wondered if I handed over 4 vouchers in one go whtehr I woul get it for free?
#13
Join Date: Jan 2005
Location: Egham, Surrey, UK
Programs: Mucci Champion des Champions, BAG4L, *A Gold, HH DIA, Hyatt Explorist, Hertz Gold, Avis President
Posts: 3,416
I'm sure you will voluntarily declare it later. In the meentime those £10 voucher thignies I have printed off, has anyone used them yet. You see I fancy one of those Jorge Jensen alarm clock thingies and wondered if I handed over 4 vouchers in one go whtehr I woul get it for free?
PUTI'd I think
#14
Join Date: Jul 2006
Programs: SQ-PPS+8, BA-Mucci Diamente, Mucci Siegneur des Bains Chauds
Posts: 2,286
#15
Join Date: Jan 2005
Location: Egham, Surrey, UK
Programs: Mucci Champion des Champions, BAG4L, *A Gold, HH DIA, Hyatt Explorist, Hertz Gold, Avis President
Posts: 3,416
So the poor spelling wan't caused by alcohol ? I'm shocked and sorry to hear you had to work so hard today - why not take tomorrow off to recharge your batteries?