Airport VAT Scam?

WH Smith is criticised for its controversial decision to demand boarding passes from airport passengers to avoid paying VAT.

15:35 18 October 2015

WH Smith is now facing criticism for refusing to back down over its controversial decision to demand boarding passes from airport passengers to avoid paying VAT despite making £121million profit this year.

 

Chief executive Stephen Clarke said that introducing dual pricing would be impossible and that it could cause confusion.

 

“This only affects a small proportion of our sales and only airside at certain airports. The average ticket price of £1.40 is affected, so we’re talking about a price difference of a few pence.

 

“Introducing dual pricing would cause some confusion at the till point which would slow down already very busy stores. Changing a price difference of a few pence becomes practically very difficult.”

 

Martin Lewis, founder of Money Saving Expert, said that the company should change their policy.

 

“I’m surprised that WH Smith is risking that much brand damage to continue this unfair policy. I’m aware that even in duty free stores where you legally have to show your boarding pass, staff are getting abuse, so it’s surprising that staff in WH Smith still do this despite the anger it is clearly causing passengers.

 

“People need to be very sure that when you go into WH Smith you do not show your boarding pass unless they will give you a discount.

 

“That way they will lose profitability and they will be forced to change their system. It is just a shame that militancy is the only way that will force them to do it differently.”