The Airport Operators Association (AOA), along with UK Travel Retail Forum (UKTRF) has introduced a new code of practice (CoP) for airport retailers across the country.

Aimed to provide clarity to customers, the industry-wide set of guidelines urge airport retailers to offer a clear description to all customers on how the VAT benefit is used.

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The guidelines also require airport retailers to provide information on when and why customers should present boarding passes.

"We have worked closely with airport partners and retailers to improve information and transparency about how the retailers apply the VAT relief concession."

Furthermore the airport retailers, who have agreed to implement the new guidelines, will report to the UKTRF on how they plan to implement the new CoP.

Developed on the basis of existing VAT relief practices in airports, the guidelines will be made available in-store and online.

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Airport Operators Association chief executive Darren Caplan said: “AOA member airports are determined to ensure that passengers have an excellent experience from the moment they arrive at the airport to the moment they leave.

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“We have worked closely with airport partners and retailers to improve information and transparency about how the retailers apply the VAT relief concession, ensuring travellers can continue to shop at UK airports confident in the knowledge that they are getting a great deal.”

The participating airports will also help customers with additional information about the code.

Since June 1999, shoppers travelling within the European Union (EU) have been paying VAT and excise duty for their purchased goods.

Only customers travelling outside the EU can avail tax-free status of sales.

With the implementation of the new CoP, both the EU and non-EU travellers will be able to pay a single price for most of their purchase at the airport outlets.