Tax free from which one? Will VAT be refunded on any purchase amount? Important nuances of applying for Tax Free at the border

Tax free is a system for refunding value added tax to non-residents of the country in which the purchase was made. In one form or another, the tax free system exists in many countries, but most often Russian tourists are faced with refunds of part of the cost of purchases made in the European Union.

The right purchase

So that after crossing the Russian border you can get cash refund, when purchasing, you must comply with a number of conditions.

The first condition is that the store where you purchase the goods must be part of the tax-free system. This is usually announced - with a sticker at the entrance with the words Tax Free or a message (in one form or another) that the store operates in this system. If there is no such announcement (or you did not notice it), you can ask the cashier with a question.

The second condition is that it must be spent at a time a large sum(each country has its own minimum threshold). List of the most popular countries and their minimum threshold:

Austria, Belarus – from 75 euros.
UK - £30.
Germany – 30 euros.
Netherlands – 50 euros.
Spain – 91 euros.
Italy – 155 euros.
Lithuania – 200 litas.
Finland – 40 euros.
France – from 175 euros.
Estonia – 38 euros.

And third, be sure to issue a special check. It is issued by the cashier, cashier or salesperson at the buyer’s request. The product must be packaged and sealed - it cannot be used in the EU, otherwise you will not be able to cash a Tax Free check.

Tax free check example

Get a Tax Free refund at the airport

When passing through customs control (when leaving the country), you need to present your purchase and receipt to customs officers. The stamp placed at the border confirms that you are eligible to receive a refund.

The next step is to find a special window at the airport, which is called: Tax free. Usually it is located in not the most favorable places, for example, in one of the far corners. If your purchases are small, you don’t have to check them in as luggage. Or issue a refund using tax free checks before checking your items into your luggage. In some countries that are particularly popular for shopping, there are huge queues at the refund window for purchases, so you need to time it correctly.

Money can be received not only in cash, but also to a bank card account by filling out a special application indicating its details. This method has its drawback - unlike cash, which is issued immediately, the transfer to the card is carried out within 60 days. This is due to the fact that the volume of returns under the tax free system is very large.

There is another, remote method of returning funds. You can contact the company manager Global Blue Refund with a request to issue a letterhead and a postal envelope. In the envelope you will need to include checks with a customs stamp, a completed return form, your bank card details, and also leave contact information(email and phone). Having received the envelope, the employees of this company will process the transfer, and if they have any questions, they will contact you at the specified phone number or address.

Refunds on Tax Free checks in Russia

Where can I get tax free if I couldn’t do it at the airport? Or you crossed the border by car, bus or railway? Receiving a refund is possible not only at the airport, but also in Russia.

There are 7 tax free systems in total; a refund in Russia can be received by check from any of them: Global Blue Tax Free, Premier Tax Free, Tax Free Worldwide, Innova Tax free, La Caixa, El Corte Ingles and New Tax Free.

The most popular system is Global Blue. In Moscow You can issue a refund using Tax Free checks issued in it in three banks: ZAO Banca Intesa, VTB24, Bank and MDM Bank.

In Moscow, Bank Intesa offices issuing refunds under the Global BlueTax Free system are located at::

Krasnoproletarskaya street, house 30.
24 Zatsera Street, building 30.
Sadovaya-Chernogryazskaya street, house 16-18, building 1.
Bolshoy Gnezdnikovsky Lane, building 1, building 2.

MDM Bank offices where you can get tax free:

Kotelnicheskaya embankment, house 33, building 1.
Lubyansky proezd, house 21, building 1.
Profsoyuznaya street, house 7/12.
1 Tverskaya-Yamskaya street, building 11.
st. 1st Bukhvostova, house 12/11, building 11.
Krasnaya Presnya street, house 29.

VTB24 Bank branches where you can get tax free:

st. Bolshaya Sukharevskaya, 14/7, no. 2
st. Avtozavodskaya, 6
Pokrovka st., 28, building 1
st. Marksistskaya, 5, building 1
st. Bolshaya Molchanovka, 17/14, building 2
st. Barclay, 7, building 1

In order to receive a refund through the bank, you must contact one of the listed branches and provide a number of documents.

Original Tax Free receipt with customs mark.
Original cash receipt, to which the tax free check was issued. This rule does not apply in all countries and is therefore not mandatory.
Identification document (passport of a citizen of the Russian Federation).
Foreign passport.

A bank employee will help you fill out an application, then you will receive money at the bank's cash desk.

The advantage of this method is that it is not necessary to receive a refund in this way immediately after returning from abroad; this can be done within several months. The exact validity period of Tax Free checks is determined by the state in which you made purchases.

For example, the validity period of a check received in Austria and Spain is not limited, but the customs stamp has a validity period of 3 months. A check received in Germany is valid for three years, in Switzerland – 1 month. To avoid missing the deadline, it's best to cash your checks as early as possible.

The disadvantage of returning money via Tax Free checks through a bank is that you will have to pay the bank a commission, which on average ranges from 1 to 3%. If the refund amount is large enough (more than 100 euros), the bank will not issue the money immediately, but will check the checks within two to three days, and only after that you will be able to receive a refund.

Personal experience

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If in simple language, then the term Tax Free means the procedure for refunding tax on goods purchased abroad.

General information

Tax free– this is a cash return to a foreigner tax included in each product. In our state this tax is called or abbreviated VAT. In England - VAT, in France TVA, in Spain - IVA, etc.

For some reason in our country tax included in the goods called value added tax and thus confused ordinary people. The terminology “value added tax” is completely incomprehensible without external explanation. Either they translated tracing paper from other languages, or they “had” to make something simple complicated.

It is customary to return tax free due to the fact that VAT is a tax, the proceeds of which are used to support the lives of its citizens. Considering that most tourists from other countries come for a short time, they do not have time to take advantage of these social benefits. So it’s fair to give them this money. This is where one of the rules follows. You may be denied tax free if you have stayed in the country for more than a certain period of time. Usually more than 90 days. Or you have a residence permit in this country.

The Tax Free amount varies from one state to another and on average ranges from 10 to 20 percent.

Each country has restrictions on the minimum amount of goods after which you are entitled to a tax free refund.

Tax free refund for clothes, household appliances, jewelry and some other types of goods. There are exceptions, for example, in Norway you can return tax free for money spent on food if it is more than 285 kroner (about 20 euros).

How to return Tax free

1. The product must be purchased in a store operating under the Tax Free system. Company logos of tax refund companies may be pasted on store windows or inside the store. In the store you can ask the sellers if they have tax free.

There are several companies involved in tax free refunds. The most famous and having the most wide network This is Globalblue. In fact, it doesn’t matter who exactly is responsible for returning your money. Just remember their icons. When you see it in the store, it will become clear to you without words that you can get tax free here.

2. When making a purchase in such a store, ask for tax free. You should be given special Tax Free Checks.

3. The tax free check must be filled out (not necessarily in the store), you must indicate your data: full name, passport number, residential address, email address, and also sign. Keep in mind that if you want to receive money at the airport upon departure, then the checkbox should be next to Cash (cash).

4. Put a customs stamp at the airport on the tax free receipt. This is done either in special offices that are available at the airport (sometimes before going through customs). Or, if they are not there, then the stamp must be placed where they make a note in your passport about going through customs, i.e. at the border guards. Very important: without this stamp you will not get your money back!

According to the rules, you must show: a completed tax free receipt, a regular sales receipt, and the product in its original packaging. Sometimes customs officers may neglect the latter, but they have every right to refuse to print you on a tax free check if you are already using the item or you don’t have it with you.

5. Take the money by handing over a stamped check to special items issuing tax free, which are called Tax Free cash Refund.

Sometimes tax-free points at the border run out of cash. In this case, you will be given an envelope in which you place the completed tax free receipt. The tax free check must indicate with a tick that you want to receive the money on a plastic card and indicate which one. After which the envelope must be placed in a special box, which, as a rule, is located here. And forget about it for a couple of months. Money can take up to 4 months.

You can also use this method (send an envelope) if you do not have time to receive money at the point of issue due to a long queue. A special envelope for sending, where stamps are not required, is usually given in the store along with a tax free check.

For each place (country or city), it is better to find out in advance how the procedure for issuing tax free is carried out. Each place may have its own rules. For example, sometimes you need to put a stamp on a tax-free receipt before passing through any checkpoints and get cash there nearby. And if you go through customs, you will either have to go back or get money in another way.

Answers to frequently asked questions

Forgot to put a tax free stamp at the border

In this case, there are several options. Get stamped at customs on your next trip. As mentioned above, you must have the product with you in its original packaging. Or, in your own country, go to the embassy of the country where the purchase was made and put a stamp. There is a commission of around 20 euros for this process.

Where can I return tax free in Moscow?

Banks that return tax free are listed on the website www.globalblue.ru. You can also look there for other cities.

Deadlines for receiving tax free

Each country has its own deadlines for obtaining tax free. There are two deadlines:
– Tax free check period is the time during which you need to put a customs stamp on the check. On average 3 months, but there are exceptions up to 30 days or six months.
– The validity period of the customs stamp on this check. From 2 months and unlimited.

Minimum amount to apply for Tax Free and more

The data in the table is for informational purposes only and may not reflect recent changes, if any. If you need absolutely accurate data, contact tax free refund companies or other official sources for information.

Country	Minimum amount to issue a Tax Free check	Estimated refund amount	Time period for which you need to put a customs stamp on your Tax Free check	Validity of Tax Free checks with a customs stamp
Austria	75 eur	15%	3 months	3 years
Belgium	125 eur	15%	3 months	3 months
United Kingdom	30 gbp	16.5%	3 months	unlimited
Hungary	52001.01 huf	19%	3 months	6 months
Germany	25 eur	14.5%	3 months	4 years
Greece	120 eur	17.5%	3 months	3 months
Denmark	300 dkk	19%	3 months	1 year
Ireland	any amount	17.5%	3 months	3 years
Iceland	4000 isk	15%	3 months	unlimited
Spain	19.15 eur	15.7%	3 months	5 years
Italy	154.94 eur	15%	3 months	3 months
Cyprus	50 eur	12.5%	3 months	1 year
Latvia	44 eur	12.4%	3 months	1 year
Lebanon	150000 lbp	7.42%	3 months	unlimited
Lithuania	200 ltl	13.5%	3 months	unlimited
Luxembourg	74 eur	11.8%	3 months	3 years
Morocco	2000 mad	15%	30 days	3 months
Netherlands	50 eur	16%	3 months	unlimited
Norway	290 nok	19%	1 month	1 year
Poland	200 pln	16.5%	3 months	7 months
Portugal	61.35 eur	15%	3 months	150 days
Singapore	100 sgd	6.08%	2 months	2 months
Slovakia	175 eur	13.5%	3 months	5 months
Slovenia	50 eur	15%	3 months	6 months
Türkiye	108 try	12.5%	3 months	3 months
Uruguay	500 uyu	14.4%	3 months	unlimited
Finland	40 eur	17%	3 months	5 months
France	175 eur	13%	3 months	6 months
Croatia	740 hrk	17.9%	3 months	6 months
Czech Republic	2000 czk	17%	3 months	5 months
Switzerland	300 CHF	7.3%	30 days	4 years
Sweden	200 sec	19%	3 months	1 year
Estonia	38 eur	14%	3 months	1 year
South Korea	30000 Krw	8.18%	3 months	3 months

Today, Russians and citizens of other countries are increasingly traveling abroad to make some purchases there. At the same time, they leave the tax far from the bins of their homeland. But it has long been known that in modern world Each traveler has the opportunity to carry out a profitable operation, called a Tax free refund (a specific part of the VAT). Tax free first appeared in the 1960s in Sweden. Since then, citizens of many countries have been actively taking advantage of such an attractive opportunity to save money.

Essence of Tax free

Tax free - what is it? As noted above, this concept implies a VAT refund. Everyone knows that the presented tax is aimed at social Security society. Thus, it is included in the final cost of absolutely any product or service. As a rule, the VAT amount varies from 9 to 20 percent, which completely depends on the individual settings of a particular state.

Why do they return Tax free? The answer to this question is much simpler than you might imagine. The fact is that tourists who have made some purchases and paid the tax included in the price do not have time to apply its social mechanisms, since they stay in the country for a very short period of time.

Brief description of the process itself

When making a purchase on the territory of another state, a tourist has the right to receive a special check. When leaving the country (at customs), this document must be stamped with a stamp specifically defined for the operation in question, which will become absolute confirmation that the goods have been exported (Free tax filing). Only after carrying out the above operation is the citizen given the right to return VAT. You can receive funds both after clearing customs and upon arrival.

It should be noted that such a beneficial system extends its effect to approximately 20 countries around the world. In addition, the procedure for refunding part of the VAT is similar in all countries. The only differences are the restrictions on the minimum cost of objects purchased on the territory of another state, as well as the validity period of the check document.

Tax free - what is it? Current Tax free systems

It is important to note that absolutely all operations for VAT refund are entrusted to Tax free systems, which are endowed with a private nature. They act as an intermediary between tourists and a specific state. Each such system includes in its structure several stores united into one network, as well as a number of offices intended for returns to citizens cash. It should be noted that any such system retains a minimum commission as a reward for the implementation of such an important operation. There are several systems known in the world, the largest of which is the following.

Global tax free unites 36 countries (29 of them are in Europe), including Germany, Finland, France, Hungary, Iceland, Norway, Lithuania, Latvia, the Netherlands and others. It should be noted that only seven countries corresponding to the presented system are located in other parts of the world (Japan, Argentina, South Korea and so on). Global blue tax free was founded back in 1980 in Sweden. Its owner is Global company Refund Group.

Other systems

The set of systems under consideration includes 3 more units in its structure, including:

Premier Tax Free, which includes 20 countries (15 of them are located in Europe), including Germany, the Czech Republic, France, Great Britain, Switzerland, Sweden, Morocco, Singapore and others. The system was founded by the developers of The Fintrax Group in 1985 in Ireland.
Tax Free Worldwide includes only 8 countries: Denmark, Iceland, Ireland, Great Britain, Norway, Austria and others. It is important to note that most recently this system has merged with the one discussed above, Premier Tax Free.
Innova Tax Free consists of six countries: Portugal, China, Italy, Great Britain, France, Spain.

Conditions for VAT refund

Both foreign citizens and persons without citizenship, residence permit, work visa or refugee status in the country of purchase have the right to take advantage of this opportunity (they must stay on its territory for no more than three months).

A necessary condition for a Tax free return is that the product meets a certain list, which includes industrial products: shoes, clothing, jewelry, household goods, electronics, household appliances, accessories, office supplies, watches, and so on. It is important to note that the system does not cover the service sector. In addition, exceptions include transport mechanisms, food, books, precious metals (in bank bullion), precious stones, located separately from jewelry, goods for professional activities, as well as objects purchased via the Internet.

Issuing a check document

The receipt issued by an employee of a foreign store indicates the total cost of the goods, as well as the amount of value added tax intended for return. The data is filled in by the seller by hand or through cash register. At the same time, the duties of the employees do not include filling out additional information regarding the client, but they, as a rule, are willing to do this. It should be noted that it is mandatory to indicate bank card details in the documentation if the client prefers to receive funds through of this instrument. After filling out the check by a trade employee, the foreign citizen only needs to check the correctness of the data and sign. If possible, it is advisable to take a VAT refund brochure from the store (according to a certain system, for example, Tax Free blue)

It must be remembered that in any case there is a specific time period during which a particular product must leave the country where it was purchased. A Tax free check document with a customs stamp also has an expiration date.

Additional nuances

A Tax refund (see above) does not mean at all that the citizen will receive the amount of the specified value added tax in full, because certain part funds are spent on commission expenses for the intermediary and administrative matters. Regarding this provision each country organized individual system rules that should be followed.

If the goods were purchased in one of the EU countries, then you need to stamp the receipt document not when leaving the country itself, but only when crossing the EU border. So, some troubles may arise if a citizen leaves the European Union through a transit stop. It must be recalled that EU members include countries such as Poland, Romania, the Netherlands, Cyprus, Czech Republic, Austria, Bulgaria, Malta, Hungary, Croatia, Sweden and others.

Ways to return part of the VAT

You can cash checks using one of the following scenarios:

Within the airport, which is the most in a fast way receiving funds.
Through the postal organization. So, you need to leave a check document at the office of a certain system (Tax free in Moscow can be obtained using one of a number of operating systems). After some time, the funds will be transferred to the bank account or to the client’s card. It is worth noting that the presented operation is quite lengthy, because the period of its implementation often reaches four months.
Through any delivery point, usually in the client’s city of residence (however, this provision applies only to large-scale settlements). It is important to note that today you can organize the operation in question without even leaving your home, through Free online tax filing.

Interesting to know! Subtleties of VAT refund in different countries

It would be worth noting a few useful facts, related to the registration of Tax free (we explained what it is at the beginning of the article) in different countries.

For check documents filled out in Poland, funds are returned exclusively in cash.
When leaving Slovenia, two stamps are required: on the check and on the Tax free form.
To receive part of the value added tax when purchasing wool products in Iceland, a stamp on the receipt is not required.
In Holland, every tourist has the opportunity to return VAT even if they purchase in a store that is not part of the Tax free shopping system. But a prerequisite for this is returning to the country again.
In Norway, the stamp is placed not at customs, but directly at the system office. In addition, this is the only country where they refund part of the value added tax on food products that are more expensive than 285 kroons.
In your requirements: you must first register, after which you just go to the customs officers. When registering, you must notify the employee that you plan to apply for Tax free. Thus, the luggage will be checked in and then returned to its owner.
Countries such as Norway, Croatia, Finland, Sweden and Denmark provide customized stamps national character. Therefore, checks from these countries cannot be used in other places. Thus, a tourist can receive part of the value added tax only at the airport.

An important point in the event that a citizen suddenly forgets to put a stamp on a check document is the opportunity to do this upon arrival home at the embassy (consulate) of the country where the goods were purchased.

Opportunity to save on purchases during tourist trips– this is always a hot topic. And even more so on the eve of the New Year and Christmas holidays, when the long-awaited sales for many shopaholics are about to open in Europe. So we are studying the schedule of European sales and the features of VAT refunds.

All the nuances are in our article!

What is tax free and why is it returned - educational program for tourists

Almost everyone knows that all goods in stores are usually subject to a tax known as VAT. And they pay VAT not only in Russia, but also in other countries. Everyone pays except tourists.

Convincing the seller that you are a tourist, and therefore can ask for a VAT refund, is extremely difficult and useless (except for rare cases when you can refund the VAT directly in the store), which is why a civilized method of refunding this value added tax was invented, called Tax Free. Which, of course, is nice, considering that VAT can be up to 1/4 of the product price.

The main condition for a VAT refund under the Tax Free system is a purchase in a store that is part of this system. So far there are not so many of them, but every year there are more and more.

It is important to understand that the tax amount is returned to you not by the retail outlet, but by the operator cooperating with it.

Today, there are 4 such operators:

Global Blue. The Swedish system, founded back in 1980, operates in 36 countries, including 29 European ones. The owner is Global Refund Group.
Premier Tax Free. Operates in 20 countries, including 15 European ones. Founded in 1985, the owner is the Irish company The Fintrax Group.
Tax Free Worldwide(note – today included in Premier Tax Free). Unites 8 countries.
AND Innova Tax Free. System operating in France, Spain, UK, China and Portugal.

You can also note Litofolija Tax Free. But this system works in Lithuania.

Video: TAX FREE - How to get money back for purchases abroad?

Conditions for VAT refund – in what case can you use the Tax Free system?

The buyer must be a tourist staying in the country for less than 3 months.
The Tax Free product list does not cover all products. You can return VAT for clothes and shoes, for accessories and equipment, stationery or household products, for jewelry, but for services, for books and cars, bullion and purchases through the global network, you will not be able to return VAT.
The store window where you purchase the product must have the appropriate sticker - Tax Free or the name of one of the tax free system operators.
You have the right to a VAT refund only if the total amount of the check exceeds the established minimum. The minimum check amount that is subject to Tax Free rules is different for each country. For example, in Austria the minimum purchase amount is from 75 euros, and if you make 2 purchases for amounts of, say, 30 and 60 euros, then you don’t have to count on Tax Free, because they take into account the total amount of ONE check. So, the minimum amount for Tax Free in Germany will be only 25 euros, but in France you will have to receive a check for at least 175 euros.
To receive tax free, you need to export the goods from the country within a limited time. One for each country. The fact of export of the purchase is recorded by customs.
The goods for which you want to refund VAT must remain new at the time of export to customs - intact, in packaging, without signs of wear/use, with tags.
When refunding VAT for products, you will have to present the entire purchase, so don’t rush to feast on it.
The period during which you can return VAT using tax free (tax refund period) is different for each country. For example, checks from Tax Free Worldwide and Global Blue operators received in Germany can be “cashed” within 4 years, but a check from the Italian New Tax Free must be used within 2 months.

Documents for returning tax free interest from the store

Registration of Tax Free is impossible without the relevant documents:

Your passport.
Tax Free form, which must be issued at the time of purchase. It should be filled out there, on the spot, after which the seller or cashier must sign it, keeping a copy for himself. As for your copy, it should be given to you in an envelope - with a receipt and a Tax Free brochure.
Purchase receipt issued on a special form. Be sure to check that it is in the envelope. Important: the check has an “expiration date”!

And don’t forget to check the presence of all the data in the form (sometimes sellers do not enter, for example, the buyer’s passport data, assuming that he will do it himself)!

Registration of tax free at customs when crossing the border - what to keep in mind?

To apply for Tax Free directly at customs, you should arrive at the airport in advance, because there may be many applicants.

What to keep in mind?

Important nuances of applying for Tax Free at the border:

Find out in advance where the Tax Free counters are, where they put stamps on checks, and where to go to get money later.
Do not rush to check your purchases in your luggage - they will need to be presented along with the receipts.
Make sure the tax free form is filled out correctly.
Remember that you must first receive the money and only then go through passport control. In those countries where tax free counters are located outside passport control, you can get money before boarding the plane.
Take your refund in local currency - this way you will save on the commission for converting it.
If you plan to leave the country not through the airport, but in another way (note - by car, by sea or by train), check in advance whether it will be possible to get a stamp on your check upon departure.
After receiving a mark on the check from customs officers and passing through passport control, you can get money at the tax free office, which can be easily found using special signs like “Cash refund” or “Tax refund” with the logos of Premier Tax Free or Global Blue. If the manager has a cash shortage or, perhaps, you want to receive your money exclusively on the card, you need to fill out the appropriate transfer form with the details of your credit card. True, sometimes you can wait 2 months for a translation.

Where and how to get money for tax free: three options for returning tax free - we are looking for the most profitable one!

Every tourist has a choice - exactly how he wants to return VAT using the tax free system.

There are three such methods in total, choose the most convenient one.

Right at the airport, before flying home. Features: you return the money immediately, in cash or to your card within 2 months. The service fee for cash payments is from 3% of the total purchase amount. Returning money to the card is more profitable: a service fee is not charged if you receive funds in the currency in which you purchased the goods. The bank itself handles the conversion.
By mail. Refunds may take 2 months (and sometimes longer). To use this method, the envelope with the receipt and customs stamp must be dropped into a special box at the return point at the border. You can also send it by regular mail directly from home, after returning, if you suddenly did not have time to do this when leaving the country in which you were visiting. You can return VAT to your account via mail. bank card or on account. To return to the card, you must indicate its details on a stamped receipt and throw the envelope in the Tax Free box directly at the airport. If you did not receive an envelope at the store, you can pick it up at the airport - at the Tax Free office. When sending an envelope from your country, be sure to use an international stamp. Important point: Tax Free returns via mail may not be the most reliable method, so be sure to scan or film all your receipts before sending them, so that if they are lost, you have proof of their presence.
Through the bank. Naturally, not through any one, but only through one that is a partner of tax free system operators. In Russia, VAT can be returned in two capitals, Pskov, and also in Kaliningrad. When returning funds in cash, the operator will again charge his own service fee, starting from 3%. Therefore, the most profitable way again remains to return the tax free to the card.

There is also a 4th way to refund VAT: immediately after purchasing the product - right there, in the store. This method does not work everywhere, but it is possible.

Important:

Even if you return the funds on the spot, you are required to put a stamp on the form at customs, and upon arrival home, mail the form there, to the store, to confirm that the purchased goods have been exported.
If this confirmation is not provided within the specified period, money will be debited from the card in the amount returned by tax free.

And one more thing:

The amount you get back is unlikely to be what you expect for a simple reason - commission and service fees. The conditions for VAT refunds, the general Tax Free system and the addresses of offices at the border can be found directly on the operator’s websites.
If you forgot or did not have time to affix a customs stamp before leaving the country, this can be done at home - at the consulate of the country where you bought the goods. True, this service will cost you at least 20 euros.

Who can be denied tax free payments - situations when you definitely won’t receive tax free money

Unfortunately, cases of refusal to refund VAT under the Tax Free system do occur.

Main reasons:

Incorrectly issued checks.
The presence of serious corrections in checks.
Incorrect dates. For example, if the dates of the Tax Free check are ahead of the date of the cashier's check.
Absence of a customs stamp with the date and name of the checkpoint.
Lack of tags and packaging on the goods when presented at customs.

Tax free in Russia in 2018 – latest news

According to a statement by the Deputy Head of the Ministry of Finance of the Russian Federation, it is also planned to introduce a tax free system in Russia from 2018, but for now in pilot mode, and with specific companies.

This bill was adopted by the State Duma in the 1st reading.

The system will first be tested in some ports and airports with maximum number foreigners.

When shopping in Europe, you often see a blue Tax Free sticker. Those who go abroad for the first time usually do not attach any importance to this sticker, although with the help of this system you can return up to a quarter of the cost of purchases. In this article we will talk about the return system and the benefits of using it.

What is Tax Free?

Tax Free is a specially designed system that allows you to return value added tax, which you, as a taxpayer of another tax zone, are not required to pay.

When a tourist or businessman bought certain goods and decided to take them outside the country where the purchase was made, he has the right to return a percentage of the amount that is allocated for VAT. This system has mutually beneficial aspects for both parties, namely:

for a tourist/businessman there is a chance to really save money;
For the country where the goods were purchased, it is advantageous to stimulate exports, as a result of which demand and trade turnover increase.

In the majority European countries VAT is 20%. If the amount on the price tag is 100 €, then you should understand that the real cost of the product is 83.5 € and another 16.7 € is added to the price due to value added tax (83.5 x 20%= 16.7 €). It is this tax (16.7 €) that you can return if the check amount exceeds the minimum, which is different for each country.

So, with this tax refund system, you can get an additional discount of around 10-20% on all your overseas purchases.

Minimum amounts

Each member country of the system sets its own limits for the minimum amount that a tourist must spend in order to be able to return part of the funds. As for the most ideal tariffs, it is profitable to buy in Germany, since the minimum amount to use the system is 25 €. Switzerland is the most unprofitable in this regard - you need to spend 400 €.

Below you will find a list of countries that have a tax refund system, the tax rate and the minimum purchase amount for a refund.

EU countries:

Belgium (21%., 125 €)
Bulgaria (20%, 200 lev)
Cyprus (19%, 50 €)
Denmark (25%, 300 kroner)
Germany (19%, 25 €)
UK (20%, £30)
Estonia (20%, 38 €)
Finland (24%, 40 €)
France (20%, 175 €)
Greece (23%, 120 €)
Hungary (27%, 5000 forints)
Ireland (23%, no minimum)
Italy (22%, 155 €)
Latvia (21%, 44 €)
Lithuania (21%, 58 €)
Luxembourg (15%, 74 €)
Malta (18%, 55 €)
Holland (21%, 50 €)
Austria (20%, 75 €)
Poland (23%, 200 zloty)
Portugal (23%, 60 €)
Romania (24%, 250 lei)
Slovakia (20%, 175 €)
Slovenia (20%, 50 €)
Spain (21%, 90 €)
Czech Republic (21%, 2000 CZK)
Sweden (25%, 200 CZK)
Croatia (25%, 500 kn)

Other countries:

Indonesia (10%, $440)
Japan (10%, 5000 yen)
Korea (10%, 30,000 won)
Malaysia (6%, 5000 rupees)
Singapore (7%, SGD 100)
Switzerland (8%, CHF 300)
Taiwan (5%, NT$3,000)
Thailand (7%, 5000 baht)
Türkiye (8-18%, 100 liras)

How to return Tax free

The refund procedure consists of 2 or 3 stages:

Check and receipt

For example, we went to a store that works with the Tax Free system and bought goods for 150 €. We approach the seller and ask for a special check. It indicates purchases, cost, VAT and the amount not included in the treasury of a particular state.

After being told that you need to apply for tax free, the seller must issue a special receipt in your name (you will need to show your passport). You will need to provide your details and sign.

According to the rules, you do not have the right to use the purchased goods until they are exported from the country. To do this, the seller can seal your product with special tape. In this form you must show the goods to customs. Not all countries take this point seriously, but it can be an official reason to reject your application. Remember this.

It is also worth remembering that you cannot total checks. You can get a tax refund on each check, but its value must be greater than the minimum value for a refund.

Customs stamp

After you have purchased the goods and received a completed receipt, we go to register at the airport, seaport or other place where there is customs control. There you need to approach customs officers with a request to issue a tax refund. A wet stamp is placed on a receipt made in a store.

Refund

You can usually receive a commission refund at the same airport, seaport and other places where there are points for accepting commission refund checks. You need to take into account the fact that in some places checks are processed behind passport control, but most often before it, so that you do not need to carry your purchases as hand luggage. It is imperative to ask customs consultants how the procedure for receiving funds goes. A tourist can choose a currency convenient for himself. You should also remember that commissions are deducted upon payment.

If you have a late flight and the “Tax Free” option no longer works, you need to ask the customs officer to put an exit stamp on your check (show the receipt and say “tax free”). Upon arrival in your country, you will need to find an office of one of the companies involved in the return within 3 months (that’s how long the check is valid) and provide them with the check, a copy of the passport and visa during which the purchase was made. Within a few business days, the funds minus the commission will be transferred to your bank account.