Through tax free, a certain part of the cost of the product is reimbursed. The reimbursement algorithm is the same in all states that are participants in the Tax Free system. The difference lies only in the interest rate, the validity period of the check document and the cost of acquisition, which provides grounds for receiving this type of compensation.

Table of contents:

The concept of "Tax Free"

Tax Free is a refund of indirect tax included in the price of a product or service and paid directly by the buyer in a situation where the purchase was made outside the home state. This is by no means a promotion or discount, contrary to popular belief. The basis of this procedure is pragmatic calculation.

States are interested in their products being actively exported. Without burdening foreigners with paying taxes, the state thereby stimulates citizens to make new acquisitions. This allows local production to grow without increasing the volume of surplus in the domestic market.

How to get Tax Free: return conditions

To return part of the amount from a product purchased in a foreign country, you need to prove the following:

• the buyer does not have citizenship of the country in which the purchase took place, as well as refugee status, the right to officially reside and work in this country;
• the period of stay in the country where the goods were purchased should not exceed three months;
• the amount for which the entire purchase was made, i.e. the lower limit of its cost, which makes it possible to count on receiving Tax Free, is established by countries based on individual legislation.

note

Most states do not tax food, tobacco, alcohol, jewelry, cars, or printed materials. Returns are not provided for purchases of designated types of products.

The system providing for this VAT compensationTax Free Shopping, used in the European Union, as well as in 20 other countries of the world, in particular:

• Belarus,
• Britain,
• Turkey,
• South Korea,
• in a number of other countries, to which Russia Not included.

Tax Free does not apply to purchases from online stores.

Stages of obtaining Tax Free

In order to be sure of the possibility of receiving part of the money back for it when purchasing a product, you need to pay attention to the following: those stores that are partners of the system have a special inscription on the door.

The algorithm for registering and receiving tax free in this case is as follows.

First stage. At the time of payment for the purchase, the seller must issue a special receipt confirming the right to Tax Free. Inside the paper, the full name of the buyer, the state and city in which the particular citizen lives are written in Latin letters, the date of purchase and its total cost are indicated.

note

For this procedure, the buyer must provide his or her passport.

Sometimes sellers only fill out the date and amount fields. In such conditions, the remaining items have to be filled out by the buyer himself in accordance with the data of his passport.

Purchased products must be kept in the same condition in which they were purchased until the buyer receives a refund. This applies to tags, labels, packaging, seals and other things.

Second phase. The tax refund procedure begins before returning to your home state, at the place of departure.

Important fact

This process may take a long time. NIt is strongly recommended to arrive at the departure point in advance.

Having arrived at the place (airport or train station), you need to go through the customs point. If the purchase is in hand luggage, you need to go through the customs point before registration. If in luggage - after check-in, because It is more convenient to check in your luggage at the customs point.

The customs officer checks the purchase and its integrity, also looks at the receipt issued to the buyer, and compares the data in the receipt with the information in the international passport. Afterwards, he puts a stamp on the Tax Free receipt.

Third stage. You can receive your due funds as follows:

note

Before closing the envelope, the payment instrument number must be indicated on the receipt. If this procedure is completed correctly, the money will arrive on the card within 8 weeks.

When making purchases abroad, VTB clients can save personal funds and return up to 20% of the purchase price using the tax-free return service, including through VTB Bank. Getting your money back this way is not the easiest task, but it is quite doable, provided you follow a few simple recommendations.

What are tax-free checks?

First of all, you need to understand what tax free and tax free checks are.

Tax-free is a convenient VAT refund system. In other words - value added tax. This service is presented in one way or another in most countries. But VTB Bank clients often come across this service when traveling through European countries: Spain, Italy, France and many other popular tourist destinations.

1. The store where you make a purchase must be part of the tax-free system. Special stickers at the entrance to the store can indicate the interaction of the outlet with the VAT refund system. If you do not notice the identification mark, then do not hesitate to clarify this issue with the cashier or seller.
2. In order for the tax free refund procedure through VTB to become possible, you must make a purchase with one check for the minimum amount that will allow you to use this service.
3. The most key condition for successfully obtaining VTB tax free is a special tax free check.

A tax free check is a detailed check issued according to certain rules. Depending on the level of the store where you make the purchase, the receipt may be issued manually or printed through the cash register. You should carefully check the received receipt and keep it together with the receipt for payment for the goods until you receive the money at VTB issuing points. Otherwise, VTB clients will not be able to use this service.

How to properly issue a tax-free check?

When issuing a tax refund voucher, do not hesitate to monitor the process to ensure that the specified data matches the list of required information.

A well-drafted tax refund document must contain:

1. Full name of the buyer.
2. Country of registration (residence).
3. Code and series of a foreign passport.
4. Purchase amount in national currency.
5. Time to make a purchase.
6. Date of purchase.
7. Calculated refund amount.

Working in a special system, the store operator can quickly calculate the amount for which you can claim a refund through the VTB tax-free return system. After calculation, the figure is entered in a special field on the check.

When leaving the country of destination, do not forget to put a special stamp and present your passport, receipts and purchased goods to the customs officers.

Minimum amount to apply for tax free

Remember that the minimum threshold for purchases by check is individual in each country. Therefore, study this nuance before your trip. Below you can see the estimated minimum check amount for a number of countries:

How to return tax free?

There are several ways to return tax free. We recommend paying attention to the most popular of them:

Having arrived at the departure airport, you need to find a special window in the “Tax Free” sign. Often, such a window is located in remote areas of the airport. But it can be easily noticed thanks to the queue of people wishing to apply for a VAT refund. In some countries, the queue can reach several dozen people, so try to arrive at the airport early. We recommend that you check the opening hours, since the tax free window is not open 24/7 everywhere.

In modernized airports, you can increasingly find electronic terminals, thanks to which you can automatically credit the amount to your personal card in a couple of minutes.

Tax free in the host city

Some European countries practice tax refunds through a local bank branch. After making a purchase, you can check with the seller about the possibility of receiving money at the nearest branch. This method is one of the most convenient, since you do not worry about limited time and can always solve a possible problem on the spot.

Tax free via VTB

If for some reason you were unable to receive a tax free refund at the airport or you crossed the border by car, bus or train, do not worry. You can go through the tax free return procedure in Russia at VTB.

The most popular refund system is the Global Blue office. In Moscow, our clients will be able to issue a tax refund at VTB Bank branches at the following addresses:

1. VTB on the street Bolshaya Sukharevskaya, 14/7, no.2.
2. VTB on the street Avtozavodskaya, 6.
3. VTB on Pokrovka street, 28, building 1.
4. VTB on the street Marksistskaya, 5, building 1.
5. VTB on the street Bolshaya Molchanovka, 17/14, building 2.
6. VTB on the street Barclay, 7, building 1.

To receive a tax through VTB, you should contact one of the listed Moscow branches or a regional branch of VTB with a package of documents, which should contain:

• Original receipt with customs mark.
• Original cash receipt confirming payment for the goods. For some countries this item is not mandatory.
• Passport of a citizen of the Russian Federation.
• Foreign passport.

After completing and processing the application, you will be able to receive tax free at one of the VTB branches. VTB Bank does not charge a fee for cashing a check. However, there is a limit of 1500 euros for cash withdrawals. The same services are provided by Premier Tax free. The disadvantage of this company is the withdrawal of a small commission from each processed check.

Receiving a refund to your bank card account

The remote method of returning funds is popular. To use this service, you should contact a Global blue employee. Upon your request, the manager will issue a letterhead and a postal envelope in which you will need to enclose:

• tax free receipts with a customs stamp;
• a completed tax refund request form;
• a form indicating contact details and bank details.

Having received an envelope with information, company employees will be able to return the tax free. In case of any questions or difficulties, you can be contacted at the specified telephone number or email address.

Deadlines for receiving tax free

There is no single approved period during which you will be able to receive your refund. The exact validity period of the checks is determined by the state in which you were shopping. Often the documents are valid for three months.

However, we do not recommend taking risks and delaying the return procedure. Thus, in Switzerland the validity of the voucher is only one month, and in Germany - three years. In some countries, like Spain or Austria, checks do not have an expiration date at all. But at the same time, the customs stamp is valid only for the first three months.

If the tax amount is less than one hundred euros, the refund occurs almost immediately. For requests for large amounts, please note that the application verification process can take from two to five business days. After which you can receive your money.

Of course, obtaining tax free has a number of subtleties. However, after going through this procedure once, you will be convinced that with a thorough approach, you will remain in a significant financial advantage.

During the sales period, many people go shopping abroad. We offer useful information on how to profitably make purchases using the Tax Free system in questions and answers.

By making expensive purchases in Europe and other countries of the world, you can save a lot. This can be done using the VAT refund system - Tax Free. The two largest operators act as intermediaries between the state and tourist buyers: Global Blue and Premier Tax Free. It is their icons that you should look for on shop windows and checkout counters. If you comply with certain requirements and know some nuances, then shopping abroad will not only be enjoyable, but also economically beneficial.

Question: Is Tax Free applicable to all goods or are there any restrictions?

Answer: The tax is not refundable on goods purchased online, delivered via courier service, as well as on alcohol, tobacco products, books, vehicles and services. A prerequisite for returning tax free is to purchase the product at retail and take it out in your luggage.

Question: How can I find out if a store has a tax-free system?

Answer: A store participating in the system can be identified by the “Tax Free” flag or inscription. Appropriate stickers may be placed at the checkout. If in doubt, you can ask the seller or look on the Global Blue or Premier Tax Free website.

Question: How to calculate the refund amount?

Answer: The return percentage varies in each country, you need to find out about this in advance. There is a calculator on the Global Blue website that will help you calculate the required amount. It is worth considering that in some countries amounts are withheld for administrative expenses.

Question: Who can expect to receive a tax refund?

Answer: In order to qualify for a tax refund, you must be a non-resident, that is, a foreigner for the country in which the purchase is made. It should be remembered that in order to receive a tax refund on a purchase made in EU countries, the buyer must not have citizenship of an EU country. Thus, a Russian tourist can demand a VAT refund when making purchases in any European country, but an Italian will not receive tax free when making purchases, for example, in Germany.

Question: What should be the minimum purchase amount?

Answer: Again, different countries have different minimum purchase amounts - this should be checked in advance. This does not have to be the cost of one item - the tax free applies to the entire check. Just remember that food and consumer goods are considered separately and tax free does not apply to food products. If you don’t have the required amount, you can cooperate with friends or fellow travelers.

Question: How to get a Tax Free check?

Answer: The seller will issue a check upon presentation of a passport confirming foreign citizenship. This check is an important document - it contains your passport details, purchase amount, VAT amount and refund amount. Having received the check in hand, you need to check the availability of the number and date of issue, the cashier’s signature and the store details with a seal. Purchases are packaged and sealed with special tape. The integrity of the packaging must not be compromised. A cashier's check and a tax-free check are different things, but both checks are very important and must be kept until you return to your home country.

Question: In which countries does the Tax Free system operate?

Answer: In addition to the EU countries, tax refunds can be obtained in Argentina, Lebanon, South Korea, Iceland, South Africa, Jordan, etc.

Question: How and where to get a tax refund?

Answer: You can receive Tax Free money at the airport, train station or seaport at the customs service counters. In this case, you need to be prepared to present to customs officers the purchase itself in undamaged packaging, a cash receipt and a Tax Free receipt. The customs service, in turn, stamps the checks. Money can be returned in two ways: either in cash or by bank transfer. With the first option, you will need to go to the return point to reimburse the amount in a convenient currency, and with the second option, you will need to fill out a special document containing the bank details.

Question: When choosing the option of returning funds by bank transfer, how long will it take to receive the money in my account?

Answer: As a rule, payment is received within 3-5 weeks from the moment the check is stamped, but during the summer months, holidays or other circumstances, the waiting period may increase to 2 months.

Question: Is it possible to return Tax Free in my home country?

Answer: Yes, you can. You just need to get your checks stamped at the border. Refund points exist in 9 Russian cities; specific addresses of banks that refund tax free tax can be found on the Global Blue website.

Question: Is there any validity period for Tax Free?

Answer: First of all, you should distinguish between the validity period of a tax free check and the customs stamp period. The check validity period is the period of time from the date of purchase and receipt of the check during which you can expect to receive a tax refund. Different countries set different terms - from 1 month (Switzerland) to endless (Austria, Spain), but on average this period is 3 months. The customs stamp period is the period during which a tourist, upon returning to his homeland, can apply to a refund point. This period ranges from 1 month to six months.

Question: Is it possible to replace tax free with a simple discount?

Answer: Yes, you can. Many stores are just interested in providing a discount to the buyer on the spot, instead of fiddling with paperwork. Often, many self-respecting stores give expensive gifts to customers who agree not to apply for tax free.

Question: Who is not covered by the tax-free system?

Answer: People who have a residence permit in the country in which the purchases were made, people with a work visa, and those who have been in the country for more than 3 months cannot count on a tax refund.

Question: Is there a tax-free system in the USA?

Answer: In the US economic system, tax free is not provided for tourists. But in large stores they can get a discount of 11%. It is issued at the Customer Service upon presentation of your passport.

Question: What should I do if I forgot or did not have time to put a customs stamp on the Tax Free check at the border?

Answer: You can, of course, complain about your forgetfulness or sluggishness, or you can put this stamp at home, at the embassy or consulate of the country where the purchase was made. True, this service will cost about 20 euros.

Tax free return percentage in different countries

A country	Minimum purchase price	% VAT refund
	125.01 euro

We return money for purchases of 25 euros or more when traveling around Europe and the world. And we don't pay taxes.

Tax Free is an international value added tax (VAT) refund system. Travelers shopping abroad do not have to pay this portion of the cost of goods and services because they are not residents of other countries. VAT on goods purchased while traveling abroad can be refunded. As a rule, it is reimbursed for purchases of a certain amount in one store (or shopping center) on one day. You can return from 3 to 20 percent or more. It's not easy to make sense of all this. And there may not be time. As a result, you lose money. We recommend preparing for your Tax Free refund in advance. Then it will be easy to arrange it.

What else you need to know about Tax Free

The system operates throughout the world, but is best developed in Europe. In addition to European countries, the tax can be returned, for example, in Turkey, Israel, Argentina, South Africa, Singapore, Mexico and other countries. Each of them sets a minimum amount that must be spent to return VAT. There may be several goods, but they must be paid for with one check. Some large department stores and shopping centers, such as London's Harrods or Spain's El Corte Inglés, count as one store.

So the minimum amount in Italy is 155 €, in Greece - 120 €, in Spain - 90 €, in Lithuania - 48 €, in Germany - 25 €. The VAT rate also differs from country to country and from one product group to another. However, the amount of tax does not mean that you will receive exactly this share of the amount spent. The operating company that helps return funds will take its percentage. The approximate cost of a return can be calculated on the website of one of the operators - the Swedish company Global Blue. Next we will talk mainly about her.

This is the world's largest Tax Free refund company. Based in Sweden. Its offices (return points) are located in 37 countries. In second place is the Irish Premier Tax Free (20 offices). There are several other companies, for example, the Spanish trading house El Corte Inglés has its own Tax free system. Partly you decide who to return the money from, partly it’s a matter of chance. There are stickers on the doors and shop windows, as well as on the cash registers - you can use them to determine which operator is which. Global Blue cooperates with 300 thousand stores around the world. In Barcelona there are 90% of them. That is, there are many shops. If there is no sticker, ask.

How to make purchases

Food and non-food products are considered separately - they cannot be “mixed” in the receipt; it is better to purchase goods from one of the groups up to the minimum amount, even if we are talking about 1 euro.

After paying for purchases at the checkout, ask the seller to issue Tax Free. In a small store this will happen there. There are special counters in shopping centers. You will be asked to fill out a short form, which will indicate all the information about the return: date of purchase, your passport details, home address with zip code, store details. See an example of filling out the Global Blue form here. You will need a foreign passport or a copy of it (required). All information must be triple checked. An error in a letter or number may cause refusal at the next stages of the return - do not relax, there are several more of them.

Another, slightly faster way is a personalized Global Blue card (SHOP TAX FREE Card). It will already have all your data. The seller will count them from the card and print out the completed form. To apply for a card, register on the operator’s website. Previously, cards were plastic - they were delivered by regular mail. Since December 13, 2016, Global Blue issues only virtual cards. You can show it to the seller directly on your smartphone. But regular cards are still valid. It is important to remember that each card is individual. It cannot be transferred to another person, even close relatives.

What happens next: in some European countries, purchases are sometimes sealed with special tape. The Tax Free receipt along with the check will be pasted on top. In this case, it is better not to open the purchases. However, even if they are not sealed, you should not unpack the boxes (or carry things) until you return home. The tax can only be refunded on goods that were not used in the European Union. For information on other countries, check in stores or on the Global Blue website in the “FAQ” section.

In addition, not all products can be returned Tax Free. “Returnable” categories include all industrial goods: clothing, shoes, jewelry, household supplies, watches, household and electronic appliances.

“Non-refundable”: alcohol and tobacco, medicines, weapons, antiques, books and souvenirs, food, as well as various services. The exact lists of goods and services differ in each country. Or the refund amount for certain groups will be lower than for popular clothing, shoes and equipment. For example, VAT in Poland on medicines is only 8% instead of 23% for other groups of goods.

Tax Free can also be returned for purchases in online stores.

What to do at customs

At customs at the airport (or train station), check in for your flight, but do not rush to check in your luggage. Tax Free receipts and receipts from stores must be stamped at the customs service. This is a very important point - without stamps, they will not be considered valid, no matter where you go with them later. This way you confirm the export of goods from the country. Customs officers may ask you to show your purchases - therefore they cannot be checked in or unpacked. You should apply for Tax Free in the European Union only once in the last country, before flying home, or a third country outside the EU if you are traveling across several countries.

At large airports, customs can be located anywhere - arrive a few hours in advance. Another reason to take your time is the long queues during the tourist season or sales season. There may be many people wishing to return VAT, and you simply will not have time to go through all the stages of the return. At the same time, travelers agree that applying for Tax Free at night is more difficult than during the day - there may be no employees at customs, and in general there are fewer flights at night.

The Tax Free form completed in the store must be stamped within a certain period of time from the date of purchase, depending on the country. In some places this period is short, in others it is impressive. In Italy, the Czech Republic and Lithuania - three months, in France - six months, in Germany and Spain - four and five years, respectively. This means that during this time the product must leave the country once it was purchased. A stamped receipt is also valid for a certain period of time: from a month (in Switzerland) to infinity (in Spain and Austria), but in most European countries - three months. During this period you are entitled to a refund. Read on to find out how to do this.

How to receive the money

There are three main ways and one unexpected one:

1. At the airport at operator return points- they are located after passing inspection and customs. They must include representatives of the tax operator. The money is returned in cash or to the card account. If you choose the first option, the Global Blue service fee will be 3% and the total amount will be less than in the store receipt. If the second one - without it. Money is returned in the currency of purchase or in US dollars. If you bought in euros and returned in dollars, you will be charged a commission again. Therefore, it is more profitable to return funds not in cash, but to the card and in the currency of purchase - your bank will make the conversion itself (if necessary).

2. By mail yourself. To do this, place the Tax Free form with the receipt in a special envelope from the operator (ask in the store) - it should also have a customs stamp on it. Place the envelope in a box at the same return point, or send it by regular mail from your home country. This method is suitable for those who, for some reason, did not get to the operator after customs - they arrived at the airport late, or did not want to stand in line. The return address is indicated on the receipt, envelope and on the Global Blue website.

3. In a bank that cooperates with operators. For Global Blue this is Bank Intesa. In Russia, returns can be made in four cities: Moscow, St. Petersburg, Pskov and Kaliningrad. As in the first case, Global Blue will charge a service fee of a few percent for cash returns. It is more profitable to return it to the card. Transfer times are standard: 3-5 working days.

Unexpected. In rare cases, Tax Free is ready to be returned to the store immediately after purchasing and filling out the form. But it will still need to be stamped at customs and the form will need to be sent from home by mail back to the store to confirm that the goods have been exported. If you do not do this within the prescribed period, funds will be debited from your card in the amount that has already been returned to you. This also applies to online purchases, but after the goods leave the country. For example, you spend 100 euros, export the goods (put stamps at the border), confirm the fact of export, and the funds are returned to the card.

What will prevent a return?

If all other conditions are met, they may refuse if you filled out the documents incorrectly: you made mistakes in the Tax Free receipt or did not stamp it at customs. The form should be filled out cleanly - without many corrections.

The same applies to the customs stamp - it should read the name of the checkpoint - this is important if you are returning money through a bank in your home country. Bank employees must read its name.

Another likely reason for refusal is incorrect dates. The Tax Free form and cash receipt must be issued on the same day. However, there are exceptions to this rule. For example, in Spain, purchases in one store on different days are added up. In Germany, products under the same brand are also counted as one receipt. It is impossible to learn the tax rules of all countries. To avoid confusion, find out about the return conditions in each specific country (store and each Tax Free operator) before making purchases.

Finally, you definitely won’t be able to get your money back using Tax Free if you are a tax resident of this country.