Gavin Newlands – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Gavin Newlands on 2016-04-08.

To ask Mr Chancellor of the Exchequer, what progress his Department has made on its review of the treatment of VAT in airside retail shops.

Mr David Gauke

On 31 December 2015, the Chancellor announced a review of the tax treatment of airside retail sales, with a view to identifying options for passengers to receive more of the direct benefits. HM Revenue and Customs (HMRC) has completed its initial fact finding.

The Government is keen to identify options that provide overall best value for travellers. This means fully understanding the potential impacts of possible changes on travellers, retailers and airports, and I have asked HMRC to explore these thoroughly. Once this work has been completed, decisions on the best way forward will be made in the autumn.