Duty Free

[TimberWolf]

Is it common knowledge what a rip-off airport Duty Free is these days? E.g. At Malaga airport yesterday tobacco products were on sale for over double the price you'd pay in the shops in Gibraltar. And on the plane, exorbitantly priced products were being promoted as 'tax free'.

No doubt things confiscated by customs (e.g. suncream and water) are similarly overpriced inside airports. Still, as long as something's described as tax free it must be a bargain. The tax free shops were devoid of human life.

[AtW]

It used to be that in Heathrow duty free electronics in Dixons actually was cheaper to buy than with VAT in the same Dixons, but hat was like 10 years ago ...

[centurian]

Not to menion the fact that you are committing tax avoidance - which as we know is akin to benefit fraud nowadays

I think BAA earn more from rent from duty free shops than all their aircraft/airline revenues combined.

[AtW]

Not to menion the fact that you are committing tax avoidance - which as we know is akin to benefit fraud nowadays

No, it's not tax avoidance - the rate of VAT on such goods is 0%.

[centurian]

No, it's not tax avoidance - the rate of VAT on such goods is 0%.

Hence you're avoiding VAT by buying it in the departure lounge as opposed to the high street.

[AtW]

Hence you're avoiding VAT by buying it in the departure lounge as opposed to the high street.

There is no VAT on exports outside of EU - there is 0% VAT rate on those. Duty free in airplane during flight is outside of UK laws anyway, that's why they don't sell duty free before takeoff and well proper in the air. Again no avoidance here, just different rules work.

If you want to pick on proper bad tax avoidance, then go check BN66 thread in another subforum.

[centurian]

Again no avoidance here, just different rules work.

It is avoidance if the reason why you bought the item was because you didn't want to pay the UK tax. Nothing illegal in any way, buy you've made a conscious decision to buy the item in such a way that it avoids UK tax. That's why it's called avoidance.

Tax avoidance is taking any decisive action which means that you pay less tax than you would otherwise do. Thus all of the following are tax avoidance.

* Buying an ISA - the oft quoted one
* Putting money into a pension (although this is more tax deferrement)
* "Beating the VAT rise" by buying something in late December that you might otherwise have bought in the January sales.
* Doing a booze-cruise on the continent and bringing back cigs, beer, spirits etc.

I wasn't picking on avoidance at all - just pointing out that practically everyone commits tax avoidance in some form or another - in that we change our behaviour in response to tax rules.

[AtW]

It is avoidance if the reason why you bought the item was because you didn't want to pay the UK tax.

So when I am buying a 0% VAT rated book instead of 17.5% rates digital version of the same book, then in your view I am avoiding tax?

Say, I've got diesel car, does it mean I am fuel duty avoid as I am using more fuel efficient car? Or will I be avoiding tax if I get one of those electric cars?

All of that is not tax avoidance, it's following normal common sense rules of the game.

What's tax avoidance is starting to artificially manipulate existing rules in order to get tax benefit.

[shaunbhoy]

So when I am buying a 0% VAT rated book instead of 17.5% rates digital version of the same book, then in your view I am avoiding tax?

Say, I've got diesel car, does it mean I am fuel duty avoid as I am using more fuel efficient car? Or will I be avoiding tax if I get one of those electric cars?

All of that is not tax avoidance, it's following normal common sense rules of the game.

What's tax avoidance is starting to artificially manipulate existing rules in order to get tax benefit.

Try reading centurians' post again, but this time get an adult to explain it to you.

[AtW]

Try reading centurians' post again, but this time get an adult to explain it to you.

Examples of Tax Avoidance: Tax avoidance and tax evasion - Wikipedia, the free encyclopedia

1) Country of residence
2) Double taxation
3) Legal entities
4) Legal vagueness

Living individual's normal life and say buying printed book instead of digital copy with VAT isn't tax avoidance even though net result might be less tax paid.