What is tax free and how to use it?

Many tourists think that it is difficult to make a tax-free return and leave this process unattended. We will help you understand the basic rules of this system and show the techniques of economical shopping on vacation.

 

In the price of each product or service, the seller has a value added tax, in other words, VAT, which goes to the state budget. In different countries and on different categories of goods, the tax rate is not static and ranges from 3 to 25%. The system that allows you to return the amount of this tax when buying goods by foreign citizens for further export abroad is called tax free, which means “tax-free”. It is worth noting that you do not receive the entire amount of tax, but taking into account the deduction of commission for the work of a specialized service company for returns.

 

The amount of purchase once or for one day in the same store should not be lower than the established and minimum, in each country it is different. Note that not all products are included in the VAT refund. Product category to which it does not apply: food products other than those made in Dute Free, weapons, tobacco products, services rendered, books, vehicles, purchases made over the Internet. And of course, the more you spend, the more you get (at the box office you can get acquainted with the payment gradation table).

 

When paying for goods, ask the seller for a tax free form. The upper table in the document with information about the purchased goods is filled in by the seller, and puts his signature. Be sure to ask for a cashier’s check, without it you will not be refunded, the papers must be folded into a corporate envelope, which can be sent later. You have the right to ask the seller for a tax free refund instruction, which contains detailed information about the company engaged in the return, contact information and hotline phone number, where you can ask questions, customs control points and issuing funds.

 

Filling out the form causes difficulties for tourists, but there is nothing complicated in it. Documents can vary in color and form, as different service companies deal with tax free returns, but the principle is the same for all. All data in the papers are written in printed letters of Latin. If you have difficulties with paperwork, check the details with the seller, they are always ready to help.

 

You fill in on your own:

 

Full Name / Name and surname, as in the passport

Permanent address Permanent address of residence

Country/country of residence

Passport or ID number / Passport or other identity document number

Email/E-mail

Credit card number Credit card number (optionally, a card that has a monetary limit that the bank lends, we mean cards that are called credit cards around the world - Visa Classic, Visa Gold and others, but not Visa Electron, MasterCard Maestro-debit).

Shopper signature / Buyer signature

Export validation stamp confirming the export of goods that you will receive at customs before departure.

The stamp, the last instance in filling out the form, is placed at the customs or border post upon departure. In the European Union, it will be delivered in the state where you leave the territory of the special economic zone. These details concern those who plan to travel not only within the same country or plan a flight with transfers. At the airport, before handing over your luggage, go to the customs post and present a package of documents:

 

• Completed tax free form

• Passport (for whom purchases are made)

• plane ticket

• checks and purchases

 

Purchases are subject to mandatory requirements: goods should not be used or dressed, sealed packaging, mandatory labels and price tags - the customs inspector will check purchases with the form. If the rules are violated, you may be denied the purchase and not put a stamp.

You should pay attention to the fact that each country sets its own validity period of the tax free form, to be more precise, the time that is given to the buyer for the export of goods with the opportunity to return VAT interest, for procedures is given from 1 to 3 months, so we recommend to clarify this information in advance about the country you plan to visit.

 

You can get cash or credit card at the airport. Approach a special counter with a tax free sign and present a tax free form with a customs stamp and checks, then you are returned the money.

 

What do you do if the counter is not working or you are late? You can seal checks and form in an envelope and drop them in a yellow mailbox (they are in almost any airport or already at home). Return of funds in this way is possible only on a bank card with a deduction for conversion. The envelope must be used branded, usually it is issued when buying along with the tax free form, it does not require the presence of stamps and its sending will be free.

In Russia, you can apply to tax free refund offices, which are some Russian banks.

 

Author of the text: Victoria Minina

Photos: zpp.rostov-gorod, premiertaxfree, es.dreamstime