WHSmith Travel will refund the VAT component charged on all purchases made by non-EU bound customers in its airport branches. The company has been keeping the saving for itself all this while.
However, discounts will not apply to items such as books and newspapers, which are not subject to VAT, or to items costing less than £6. Airport shops are required to collect 20% VAT on purchases made by travellers flying within the European Union and pass it on to HMRC. But no tax is payable for those flying beyond the EU. The refund system has already started from July 20 whereby non-EU travellers can buy their goods VAT-free when shopping airside.
