Tax free: what is it and how to use it. Tax Free in Paris Oles Filonenko live journal

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 being in the bins of their homeland. But it has long been known that in the modern world every 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 of 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 in another state, a tourist has the right to receive a special receipt. 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 several stores united into one network, as well as a number of offices designed to return funds to citizens. 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 the Global Refund Group company.

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 kept 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 refund. The data is filled in by the seller by hand or using a cash register. At the same time, it is not the responsibility of the employees to fill 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 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

Tax return (see above) does not mean at all that the citizen will receive the full amount of the specified value added tax, because a certain part of the funds goes to the intermediary’s commission expenses and administrative matters. In relation to this provision, each country has organized an individual system of rules, which 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 fastest way to receive 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 point of issue, as a rule, in the client’s city of residence (however, this provision applies only to large-scale populated areas). 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 refunding part of VAT in different countries

It would be advisable to note several 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 individual stamps of a 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.

Brief description of the tax free process: when making a purchase in a store abroad, a tourist receives a special check, which must be stamped with a special stamp when leaving the country (at customs) (it confirms that the goods have been exported). After this, the buyer has the right to return VAT. You can receive money immediately after clearing customs or upon arrival home. The tax-free system operates in Europe and in about 20 countries beyond its borders. The procedure for returning tax free is approximately the same, but the restrictions on the minimum value of the purchased item and the validity period of the check are different in each country.

Tax free process diagram

Tax free systems

All work on VAT refunds is entrusted to private tax-free systems, which are intermediaries between tourists and the state. Each of them includes a network of partner stores and a number of offices for refunds. As a reward, the system retains a small commission. Basic systems:

Attention! If the product was purchased in an EU country, then you need to stamp the tax free check not when leaving the country where the product was purchased, but only when you leave the EU itself (Switzerland, Liechtenstein and Norway are not included in it). Additional hassle may arise if you are leaving the EU through a transit stop (more on this at the end of the article). EU members are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Estonia, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia , Spain, Croatia, Sweden and Great Britain.

Refund amount

It should be noted that a tax free refund does not mean that you will receive the full amount of VAT paid. Part of the money will go towards administrative costs and commission to the intermediary (each country has its own rules). If you receive from a bank, you will have to pay for acceptance of the check for collection and interest for cash withdrawal. In some rare cases, the cost can reach half the refund amount. The Global Blue website has a convenient calculator for more or less accurate calculations.

Ways to return tax free (check cashing):

at the airport - the fastest option to get your money back;
by mail - you need to send a tax-free check to the tax-free system office. The money will go to your card or bank account. Takes quite a long time (2 – 4 months);
at any tax-free point - it sounds like an option with a wide choice, but in practice it all comes down to receiving a refund in the city of residence. Available only to residents of large cities.

Return (receipt) of tax free at the airport

The main mistake when receiving tax free at the airport is to check in the purchased goods as luggage when checking in for your flight, because you will need to demonstrate the purchase at customs. Sometimes a special tag may be attached to such luggage, but they are required to return it to you.

Try to simplify your life before arriving at the airport by:

find out where exactly in the departure area there is a customs window where tax-free checks are stamped, and where money is then issued (in the general area of the airport or in the neutral zone after passport control). Usually the queues at these points are such that you won’t even dare to get up. In addition, not all points are open 24 hours a day. The locations of points with operating hours are on the website global-blue.com;
Do not cut off tags and labels from purchases. At the same time, pack your suitcase so that your purchases can be easily presented if asked by a customs officer. It’s best to carry your purchases separately - as hand luggage;
be sure to fill out the tax free receipts (if the seller in the store has not done so) and keep the latter along with the cash receipts, passport and tickets.

When you arrive at the airport, first line up for customs. At the control you will need to present a tax free receipt, cashier's receipt, passport and goods. If your purchases do not fit into your hand luggage, you will have to go through customs before checking in for your flight and checking your suitcases into your luggage. Therefore, spending time and money on pre-packing suitcases in this situation does not make sense.

All you have to do is get the money and go through passport control. It is in this sequence, because in some countries VAT refund points are located in the common room. You may be left without money if you remember about it after going through passport control, because you will not be allowed to go back to the common room. In countries where these points are beyond passport control, you will receive money upon boarding the plane.

Receiving the money

After receiving the customs stamp, go to the tax free return office (it can be called differently; sometimes this role is played by one of the Duty Free store cash desks). To avoid paying a currency conversion fee (sometimes up to 5%), you must take a refund in local currency. Advice: if the money return point is located before passport control, then you should get in line before going through customs.

Having finished with tax free, go through passport control. By the way, if there are less than 10 minutes left before it ends, you can go to the counter without queuing, or use the check-in window for late passengers and check your luggage at the Drop Off counter.

If you don’t have time to get money at the airport and you know for sure that there is no tax-free issuing point in the city of your residence, then the only option is mail.

Tax free return by mail (to a bank card)

To receive a tax free refund on a credit/debit card, its details must be indicated in the tax free receipt stamped by customs. You must place it in a special envelope and in a special tax-free mailbox at the airport. The envelope can be obtained in advance at the purchase store or already on site (at the tax-free system office at the airport). Of course, it is acceptable to use a standard envelope and a regular mailbox, but then you will need a postage stamp and the recipient's address. And if you are sending a letter from your country of residence (or any other), then an international stamp is required.

Tax free returns by mail are not only the longest (2-4 months), but also the most unreliable. Use it only if you don’t have time to process a refund at the airport and you know that there are no tax-free offices in your hometown. Be sure to scan or photograph your receipts before sending them - in case of problems, they will become the only, strong evidence of your right to a tax refund.

Tax free return by mail (to bank account)

This method repeats the previous one, with the only difference that if the card account details are not filled out in the tax-free check sent by mail, then the tourist will receive an international bank check marked “to the recipient’s account” at the specified address. Such a bank check can only be cashed at the bank where you have a current account. The check has no statute of limitations, but each bank decides to accept it or refuse it individually.

Refund of tax free upon transit departure

When traveling around Europe, you must put a customs stamp on tax free checks in the last country of the European Union (Switzerland, Liechtenstein and Norway are not part of the EU). But what if the last country is only a transit stop for you? In this case, there may simply not be enough time for the tax-free procedure. Yes, and there may not be a customs point in the transit zone. In addition, the luggage is sent directly to its destination, which makes it impossible to demonstrate it. Therefore, be sure to issue a tax free refund at the airport of your first departure. Show your ticket and say that you have little time for a transfer.

Tax free refund at the point of issue in any country

To receive a refund, you must have a tax-free receipt, a cashier's receipt, foreign and internal passports (for CIS countries). Funds are paid exclusively in national currency (the exchange rate is usually not favorable).

Refund of tax free when leaving the country by car, train, ship

The easiest way is to put a customs stamp on tax-free receipts for motorists. This is the only way when it is difficult to be late. When leaving the country by train/ship, you can obtain a customs stamp at the point of departure (station/port) or when directly crossing the border. The disadvantage of the first method is that your luggage will travel separately from you. The second method is not particularly reliable, since when crossing the border, customs officers may simply not have time for you. Be sure to find out in advance whether there will be customs officers on the train or ship, and whether you can get a stamp on your tax-free receipt.

Subtleties of tax free returns in different countries

If you forgot to put a customs stamp on your tax free receipt, you can do this upon arrival home at the embassy/consulate of the country in which the purchase was made. This service is not cheap (minimum 20 euros);
for checks issued in Poland, money is returned only in cash;
when leaving Slovenia, you need to put two official stamps: the first - on the tax free form, the second - on the check;
In Iceland, a stamp is not required to receive a tax refund on wool purchases;
in Israel, VAT refunds are carried out according to the tax (VAT) scheme, which has its own characteristics;
Croatia, Finland, Sweden, Norway and Denmark have their own national stamps. This means that checks from these countries may not be accepted in other European countries. This is especially true for Croatia and Norway, since they are not members of the EU. Therefore, if you have a direct flight to your home country, you need to get tax free immediately at the airport. If you are flying or passing through other countries, you can only process a refund at home;
In Norway, the stamp must be placed not at customs, but at the tax-free office. This is the only country that allows refunds for food items (over 285 CZK), but like all other purchases, they must be presented at customs and therefore cannot be consumed before departure;
In the USA, it is impossible to obtain a tax free service, since there is no value added tax in this country. However, non-residents can get an 11% discount at large department stores. To do this, you need to find a Customer Service employee and show him your passport, after which you will be given a special card, which you will need to present at the checkout;
At German airports they require you to first register and then go to the customs officers. In this case, when registering, you need to say that you will be using tax free: your luggage will be checked in and returned to you. After issuing the checks, you will need to hand them over in another place (customs officers will explain where).
In Holland, you can return VAT by making a purchase in any store, even not part of the tax free shopping system, but to do this you need to return to the country. Conditions: if you buy goods worth more than 300 guilders, then put a customs stamp on a regular cash receipt. When you come to Holland again, go to the store where you made the purchase. There you will be able to receive the entire VAT amount without deducting commissions. For comparison: with a tax free check when leaving Holland, you will be refunded only 10% of the cost of the goods, and in the store - all 17%.

Useful resources for tourists

roomguru.ru and hotellook.ru are hotel search engines that search through different booking systems and compare the results, helping to find the best deal

aviasales.ru and skyscanner.ru are airline ticket search engines that free you from the need to view the website of each airline separately

booking.com is a world leader in hotel booking, distinguished by high quality services, transparent prices and prompt support service

Tax Free is a system for refunding value added tax on purchases made by a foreign citizen.

Value added tax is included in the final cost of the product. This money is transferred by the seller to the state budget, from where it is distributed to various social programs. Foreigners are not involved in the social mechanisms of the country, and therefore are exempt from paying taxes. This right is formalized not through a discount, but through the return of overpaid money after leaving the country.

How much can you save?

The amount of money refunded depends on the amount of value added tax established in the specific country where the purchase was made. The minimum share is , this is exactly the amount of Tax Free established in Japan. Hungary remains the most generous in the list of countries providing Tax Free: by default, they return 27% of the price.

Moreover, the amount returned in reality may be significantly less than what the tourist expects. The money is usually returned through a third party with which the store has a contract. For the services, the intermediary will keep part of the funds for himself. The largest companies working with Tax Free are Premier Tax Free, Global Blue, Innova Tax Free.

What to buy to get Tax Free

In most countries, you can get a tax refund on purchases of clothing, shoes, household and electronic appliances, watches and jewelry.

At the same time, books, food products, medicines, souvenirs and services may not be subject to regulations on VAT refunds to foreigners.

How to get Tax Free

To make a purchase

A corresponding sticker is placed on the door or window of a store that provides Tax Free refund receipts. The information is usually in English, so you don't have to be a polyglot to understand it.

The sticker will also indicate the name of the company through which you will be processing your return.

Issue Tax Free checks

To return Tax Free, the seller needs to issue special checks. In any country, they can be requested using the keywords Tax Free check or Tax Free form. This document is attached to a standard cash receipt. To complete the paperwork, you will need a passport or a photocopy of it. Make sure that all personal data is transferred to the form correctly, as errors may become grounds for refusal of a tax refund.

Easytaxfree.com

Each country has a minimum amount for which Tax Free checks are issued. For example, in Germany it is 25 euros, in France - 175 euros, in Holland - 50 euros, in the UK - 30 pounds sterling, in Argentina - 70 Argentine pesos, in Japan - 5 thousand yen.

Purchases for this amount must be made in one check. Large shopping centers sometimes have special departments that will collect data about your purchases from different stores into one common document.

Food and non-food items cannot be included in one check.

Put a stamp at customs

When leaving the country where purchases were made, you must get a stamp at customs to confirm the export of your items. To do this, service employees need to present receipts and goods in packaging, without signs of use. To be more convincing, you can keep branded store packages.

The states of the European Union are considered a single zone, so you must put an export stamp in the country through which you are leaving the EU.

The stamp is affixed in a special office at customs; you should look for it using the Tax Free office sign. If it is located before the reception desks, simply contact it and get the appropriate stamps. Sometimes the Tax Free customs office is located behind the check-in counters. In this case, put the items purchased in the country into your hand luggage so that you have something to prove the fact of purchase.

Checks have their own expiration date, during which they must be stamped by customs. Most often, documents should be stamped within three months from the date of purchase. In Switzerland, Norway, Morocco, the period is reduced to one month.

Get money

There are three ways to return VAT in material terms:

1. At the airport

With checks stamped by customs, contact the Tax Refund office of the intermediary company listed in your documents. The required amount can be given in cash or transferred to a card whose details you provide.

For issuing taxes in cash, the company can deduct a percentage; the funds will be credited to the card without deductions.

Some companies install special mailboxes at airports where you can drop a check with a customs stamp and the number of the bank card to which the funds will be received.

2. When crossing the border by land

The Tax Refund office may be located at the checkpoint. In this case, you need to get a stamp from department employees and then apply for a refund.

3. Via mail

Send the receipt with a customs stamp to the intermediary company by mail. The address must be indicated on the document itself. Don't forget to enter your bank card number in the form. The money will arrive in your account on average in 1–2 months.

4. At the bank

In some cases, you can return the money to one of the banks that cooperates with an intermediary company for Tax Free payments. Global Blue issues money in Kaliningrad, Moscow and St. Petersburg through the Intesa bank, in Pskov - through AKB Slavia; Innova Tax Free - through SMPbank in Moscow, Chelyabinsk, St. Petersburg, Kaliningrad, Yekaterinburg. A complete list of financial institutions that issue money can be seen on the website of your intermediary.

In rare cases, the tax may be refunded to you in the store immediately after purchase. However, then you will definitely need to send a Tax Free check by mail with a customs stamp, otherwise the issued amount will be debited from your card.

Why may a tax refund be denied?

The Tax Free form is filled out with errors.
You did not put a stamp at customs about the export of things from the country where you bought them.
The dates on the cash receipt and the Tax Free form do not match. This rule is not followed in all countries. For example, in Spain, purchases made in the same store on different days are summed up.
According to the instructions, you can apply for VAT with a receipt stamped by customs within a period of three months (Belgium, Greece, Morocco, etc.) to infinity (Netherlands, Lithuania, Lebanon). In practice, it is better not to delay applying for money, otherwise you may be refused.

The essence of the Tax Free refund is simple - some countries believe that they should not charge value added tax to foreigners. This is useful for the development of inbound tourism: a satisfied visitor, having received a discount on the item purchased, will return again and again. Life talks about what a “tax-free” product is and how to register it correctly.

My friend and I went to the city of dreams, Paris, not for fashionable things, but for impressions. But leaving the capital of France and not stopping by Gallery Lafayette was simply blasphemous. Moreover, when purchasing things for more than 175 euros, we were promised to return the treasured 20% of the entire purchase, recalls Alexandra from Tyumen. - Having spent almost all my money on a Tiffany&Co bracelet for 170 euros, I barely found anything for a few euros in expensive Lafayette. As a result, a chocolate bar for 15 euros helped me collect the required amount, although at that time every “penny” counted. After standing in a huge line in the store to apply for Tax Free, we finally received the coveted tax refund paper, which we had to present...at the Paris airport. To say that we were upset is to say nothing, because we flew to Russia from Amsterdam airport, and planned to get to Holland by passing transport. So the chocolate bar was bought in vain, and I did not return 20%.

If Alexandra had read the Tax Free refund rules in advance, she would have known that you can refund the tax not only at the airport, but also upon arrival in your country. Unfortunately, this is not an isolated case - few people know about purchasing “without fees”. And how this system works - a dark forest for a Russian tourist.

Purchases

To begin with, it is worth noting that the Tax Free amount, the minimum purchase price and the tax refund period are different in each country. For example, the largest amount is returned in Hungary - 27% of the purchase price, in Sweden, Denmark, Croatia, Norway - 25%, in Finland and Iceland - 24%. The smallest returns occur in Australia, Indonesia, Lebanon, Korea, Thailand - 10%, in Switzerland, Japan - 8%, and in Singapore - only 7%. Popular European countries return an average of 19-23%.

It is not possible to refund VAT for all goods and not in all stores. To shop profitably, look for the Tax Free or Global Blue sticker on store doors (to company that provides Tax Free service). For greater convenience, a complete list of stores included in the return system can be found in advance on the Global Blue website.

Do not forget that a necessary condition for Tax Free is a one-time purchase in a store or shopping center for a certain amount. The lowest bar is in Argentina - for a purchase of only 15 euros you will get back Tax Free, the highest is in Morocco, where you will have to purchase goods for at least 210 euros.

Having collected the required amount, ask the seller to issue you a check for a VAT refund. Some stores have a special service counter for this service. Please note that this cannot be done without a passport.

Tax refund

After you have bought a treasured item, do not rush to use it. To receive a tax refund, the product packaging must be undamaged and all tags and tags must be in place.

“You will not be able to use the Tax Free system if you are a citizen of this country, have a work permit in the country where the purchase was made, and also if the period between the purchase of the goods and its export is more than 3 months.”

You can return the money directly at the airport - Tax Free return points are present at the largest points. First you need to register and get a boarding ticket. But do not put your purchases in your luggage, otherwise you will have to return it for certification. At customs control at the airport, train station or port, you must be given a stamp certifying that you purchased the purchase specifically for export.

If for some reason this method is not available to you, as in the case of our heroine Alexandra, you can receive money at any Tax Free return points in your country. Or you can mail a stamped receipt and your details to Global Blue offices in the country where you made your purchase. The money should arrive in your bank account within 1-2 months.