BBC News School Report @ LCS

We are welcoming Boots' new rule.

Consumers

Two years before now, Boots’ big mistake was exposed to everyone. Boots’ airport chain had been found checking boarding passes to establish whether people were travelling inside the EU. If this was the case, the retailers took VAT off the traveller and kept it for themselves, when really the VAT should have been refunded back to the customer.

Due to this mistake, a new rule has been set down. When a customer purchases an item from the shop that is worth £5 or more, they will be asked to show their boarding pass to prove whether they are travelling inside or outside the EU. If that customer is then found travelling inside the EU, they will be charged VAT on their purchase, however, those who are travelling to anther destination will not be made to pay anything on top of the original price.

Boots’ airport chain have decided that they will make sure that customers travelling outside of the EU receive a refund of £1.42 on some sunscreen that would originally be expected to cost £8.50

Boots is not the only retailer to be affected. As we came to the end of 2015, George Osbourne, then chancellor, announced a review of duty-free shops to ensure that its customers were receiving VAT savings. He also stated that some of the retailers were keeping up to 50p of what could potentially be £1 VAT savings, instead of passing it on to their customers.

Groups of consumers told Boots that they were welcoming their new rule but told them that they were unsure as to why the retailer had chosen to set the limit at or above £5 specifically.

Dixons also made a statement that although they will not offer VAT refunds they will ensure that their customers benefit from savings through cheaper costs on their purchases.