What this means This is an important legal principle and the granting of leave to appeal to the UK’s Supreme Court was expected in the circumstances. Review of zero-rating of airside sales at airports The UK Government has launched a review to ensure that the benefits of VAT zero-rating enjoyed by ‘airside’ retailers at airports selling to customers departing the EU, are properly passed on to those customers. The review, expected for completion in the early part of 2016 will also consider other airside taxes such as excise duty. What this means Currently the retailers claim VAT zero-rating on production of the customers boarding cards but typically do not reduce the prices charged, meaning that the VAT windfall is retained by the retailers and not passed on. It is estimated that some airside retailers retained up to 50p of every £1 of potential VAT savings under the current arrangements. This will not affect sales of e.g. newspapers, books and cold takeaway sandwiches as such items are zero-rated anyway under UK legislation. Andy Ilsley, RSM UK For further information please email internationaltax@rsmi.com to be put in touch with your local tax expert. RSM Global Executive Office 50 Cannon St London EC4N 6JJ United Kingdom T: +44 (0)20 7601 1080 E: internationaltax@rsmi.com www.rsm.global/insights/tax-news RSM is the brand used by a network of independent accounting and consulting firms, each of which practices in its own right. The network is not itself a separate legal entity of any description in any jurisdiction. The network is administered by RSM International Limited, a company registered in England and Wales (company number 4040598) whose registered office is at 50 Cannon St, London EC4N 6JJ. The brand and trademark RSM and other intellectual property rights used by members of the network are owned by RSM International Association, an association governed by article 60 et seq of the Civil Code of Switzerland whose seat is in Zug. © RSM International Association, 2016 .