The new Code of Practice for retailers announced by the Airport Operators Association (AOA) and the UK Travel Retail Forum (UKTRF) today will be monitored closely, rather than policed, following the creation of this new mechanism to provide ‘greater transparency’ for customers on VAT benefits relating to tax free purchases.

 

Asked by TRBusiness whether this voluntary code will be policed in future, Sarah Branquinho, Chair of the UKTRF said it has already been agreed that UKTRF will meet with HMRC later this year to establish whether there have been any complaints about the way the new procedures are working.

 

She added: “In the meantime UKTRF is putting together a list of what each retailer is doing, which we will be reviewing with HMRC and if we need to make any adjustments then we will do so as we go along. I think it will be partly up to HMRC then to talk to individual retailers should there be a problem.”

 

 

AIRPORTS HAVE BEEN ‘EXTREMELY HELPFUL’

Asked whether the airport operators will have a say in this process, Branquinho was also positive: “Yes. The airport operators have been extremely helpful in contacting their retailers and encouraging them to sign up to the code.

 

“The airport retailers are committed to taking any customer enquiries which are directed to them about the code and that will give them a monitor as well as to what concerns might be raised by customers. Then we will be centralising that information so that we get an overall view from all of the airports.”

 

Meanwhile, Branquinho also confirmed that UKTRF and the AOA have not received any refusals from any retailers with regard to signing up for the code, as she suggested that it obviously takes time for everyone to obtain the clearance they need to make such a move.

 

She said: “If you think about it, the big airport retailers who specialise in airport retailing have signed up because they specialise in it, or they have got operators who run their stores.

 

 

UKTRF WILL ENCOURAGE RETAILERS

“I think it is a little bit more difficult for High Street chains who have a very small business on airport to get this brought to the attention of the necessary legal departments within their companies and get it pushed through. So I wouldn’t be too worried about that at the moment.”

 

Hume Brophy Managing Partner John Hume also added that several other retailers who have not yet signed up to this Code continue to make very positive noises, while others are also preparing to join: “This isn’t closed,” said Hume. “We will be encouraging other retailers to join up in the period ahead.

 

“On your last point on policing, this will work or it doesn’t and as Sarah said, we will be discussing this and then at the end of this year we will take a look at the level of industry players that have signed up. Then at the end of 2017 we will take a look at compliance and whether retailers have lived up to the spirit of this or not. And really it will either work or it won’t.

 

“UKTRF is not there in the role of a policeman and that should never be the role of a trade association obviously, but it is there to encourage retailers to do this properly and to make sure the spirit of the code of practice is adhered to throughout and then to review it with the various government departments – as and when is necessary.”

 

Branquinho added: “And there is no airport in the UK that has not got retailers who have signed up to the code, because by virtue of the fact that Aelia, WDF and Nuance are all signed up, that would cover every single airport of any size and even some of the smaller ones.”

 

To read the full article on the launch of the industry Code of Practice, click here: http://www.trbusiness.com/regional-news/europe/41-retailers-sign-up-to-uktrfaoa-code-of-practice/109924