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5th of September 2010
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Representatives of ETRC and UKTRF had a very constructive meeting with the EU Commission on 12 July 2010 on the Espace Voyageur concept for airside retailing at airports.........(more).
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Question:

How can some retailers still offer tax-free prices, even to travellers to the European Union?

Created on the 10 August 2006   Last Modified on the 7th of January 2008

Answer:
The simple answer is that they pay the VAT due themselves, rather than pass this on to the traveller. VAT is due on all sales made to passengers travelling to a destination within the EU - there are no exceptions to this. However, some retailers wish to ensure a consistent offer to all travellers, whether EU or non-EU and in order to do this they account for, and pay, the VAT due on that element of their sales made to EU passengers. This typically only applies to tax paid goods - for goods liable to excise duty such as alcohol and tobacco, the excise duty is usually sufficiently great so as to make such an offer impractical for retailers.

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