Russia has earned a tax free system for foreigners

Allowing foreigners to return the VAT on purchases made in Russia, the tax free system has earned in test mode.

Фото: Depositphotos

In pilot mode Tax free will start working in those cities where matches of the World Cup will be held - Moscow, St. Petersburg, Sochi and Krasnogorsk.

Retail organizations are ready to launch in Russia Tax free only from 15 April.

Way of working Tax free in Russia

The citizens of the non-EAEU countries (Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan) will be able to return the 18-percent VAT to the goods purchased in Russia. For compensation, foreigners need to buy goods worth at least 10 thousand rubles. ($ 159) in one day and issue a check for them.

Among the stores selected to participate in the project are GUM, TSUM, Crocus city mall, DLT and several others. The authorities expect that by the end of the year the project will work throughout Russia, writes DW.

As it was announced a week ago at a press conference at the TASS agency, a company specially created for this purpose will operate on the Russian market as an operator - Global blue Russia. This is a Swiss joint venture Global blue (operates in 53 countries) and Russian major businessman, former owner of the Troika Dialog investment company Ruben Vardanyan.

The operator will directly deal with the return of compensation to customers and the administration of the entire process.

From the VAT refund tourist flow does not depend

As one of the advantages that the system Tax free will give Russia, the authorities called the growth of tourist traffic to the country. However, in the tourist community are skeptical about this forecast.

“I can still understand shopping tours to Milan or Paris, but why go to Russia? For nesting dolls and samovars?” asks Vladimir Kantorovich, vice-president of the Association of Tour Operators of Russia (ATOR).

In his words, from the point of view of tourism business, the presence in the country Tax free doesn't matter much.

“We don’t care who will make money from this. Of course, if a new monopoly arises, this will raise questions, but this will not affect the tourism business in any way,” Kantorovich assured.

Recall, Russian President Vladimir Putin signed law of Tax free in November 2017 of the year, and 27 December, the document entered into force.

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