CONDITIONS FOR FESTIVAL PARTICIPANTS
Festivals budget are formed to enable wide promotion of shopping festivals domestically and abroad, tourist attraction to the country and retail sales development. Participation fees and sales commissions are determined in line with each festival budget.
Participation fee schedule for Baku Shopping Festival to be held during 10 April-10 May 2017, in Azerbaijani manats
Terms of commission for participant entrepreneurs in Baku Shopping Festival in 10 April-10 May 2017
Retail sales enterprises
- Participants registered to VAT refund (tax-free) program will pay 5% commission fee of their sales volume made within VAT refund scheme.
- Sales volume is calculated based on VAT refund scheme data.
- All other participants have two options:
- Participation fee;
- 3% commission fee of total sales volume made during shopping festival: sales volume is determined based on tax declaration submitted by the participant after the shopping festival.
- During the first festival, participation fee is not applicable to shopping centres and malls. Requirements to these participants:
- comply their branding activities with the festival concept;
- allocate space for infodesk, VAT booth and similar projects for free;
- support mutually agreed entertainment events;
- bear utility expenses.
- Also, those events and activities that will be mutually agreed.
- These enterprises pay participation fee only.
One of the conditions precedent to participation is that participants of shopping festivals should join discounts and loyalty campaigns for the buyers. Discounts can be applied to all or part of the goods and/or services depending on the type of business of participant. Discounts will vary between 30-70%.
To participate in promotion campaigns (lotteries, loyalty campaigns, gifts campaigns etc.), the participant will pay an additional fee. Amount of the fee will be calculated and announced for each campaign separately. All such campaigns will be arranged under win-win principle.
- Participating entities of sponsor and partner companies of the festival can have individual discounts.
- The organizer may decide to require bank guarantee from acceptable banks as collateral in return for deferral of payment of fees and charges.
The organizer can apply fines to participants in the following cases:
- Early termination of 5-year contract.
- Breach of participation rules (brand and terms of participation packages)
- If the participant breaches its contractual obligations.