Airport shop VAT scam: Why you should refuse to show your boarding pass at airport retailers - video

The Independent's Simon Read explains why you should think twice before presenting your boarding pass at an airport retailer

(Fotopress | Getty Images)

With The Independent revealing last week that some of Britain’s top retailers are pocketing millions of pounds in VAT discounts on duty free items without passing on the savings, here's everything you need to know about standing up to airport shops when you are next on holiday.

Many stores in airports across the UK now demand that passengers present their boarding cards at checkouts before paying for any goods. But that is not a legal requirement, and instead the information is being used by stores to avoid paying 20 per cent VAT on everything they sell to customers who are travelling outside the European Union.

Research by The Independent suggests the majority of these stores are passing little if any of the savings to customers, and instead are using the tax rebate to boost the profits of their airport franchises.

Here, The Independent's Personal Finance Editor, Simon Read, explains why you should not present your boarding pass at retailers in airports, whether it's against the law to do, whether the shop assistant can refuse to serve you, and what the big shops are saying in their defence.

Take a look at the video above.