This material was sent to us by its author Roman Grabezhov. It describes how to return tax – part of the money paid for the goods. Sometimes saving from such a return makes shopping abroad very attractive.
Let’s start with a small example of comparing the value of goods (read clothes) in the EU countries and in Ukraine / Russia.
All the beloved group of companies INDOTEX publishes the prices of their goods on the site in the currency of the country in which the store is located. Just compare the prices, while opening in two tabs the Spanish and Ukrainian site of the same Zara and make sure that approximately 40-60% of the goods in Spain are cheaper. Many mods have long understood that the costs of “flying to Milan”, spending weekend there and buying favorite branded things – will be commensurate with simply buying the same things in Ukrainian stores.
But not everyone knows that when buying things in the EU, we pay VAT, which we do not have to pay as a citizen of the EU. What does it mean? This means that the real need to create a Tax Free system has matured a very long time, and not all compatriots use it.
What is Tax Free?
As the wiki suggests, Tax free is a system for refunding the amount of value-added tax (VAT). VAT is refunded for purchases made by foreign nationals when they cross the border of the country in which they were purchased. The amount of refund is from 7 to 20% of the purchase amount, depending on the value of VAT in the country.
Here it is worth making a small remark, because for different groups of goods and services, even within the same country, a different tax rate may apply. But the order of the figures is clear.
Often, passing by the shop window, you can see here these plaques:
These plates indicate that in the store, buying goods for a certain amount (which I’ll talk about later) – you can refund the VAT on returning home.
I came across only two systems through which you can make a return. This is Global Refund (in most cases), which issues blue-and-white checks and Premier Tax Free with pink-green checks. Because I used only the Global Refund system, I will tell about it.
If we briefly describe algorithm of actions for registration of Tax Free, then it includes three steps:
1. Before buying from the store, ask the consultant if the store cooperates with Global Blue. The company’s website says that in its more than 30 years of practice, it has worked with 300,000 stores in more than 40 countries, including many of the world’s largest retail stores and hotels, so the likelihood is very high. If so, ask for a completed Global Refund check at the cashier when paying for purchases.
2. Leaving the borders of the EU, at the airport, find the window with the inscription TaxFree. Show your employee your purchases, checks, your passport and receive confirmation of export as a seal on the Global Refund check.
3. As a rule, there, near the window – there is information about the location of offices in the country of your interest – a city, address, telephone number. Rewrite the address and phone you are interested in and upon returning home – go to a partner company that cooperates with Global Refund and withdraw your money in cash.
It seems that everything can not be easy. But in practice, there are often difficulties. Therefore, each of the items has its own subtleties. Let’s see what’s what.
First step:
- Only an EU citizen can receive a refund, and only if he has flown with a short visit for not more than 3 months (without a residence permit). Also, you can not be a refugee, or you can come to work for a long time. You are not one of them – then we go further.
- When you make out the receipt of the Global Refund checkout, do not be surprised that the amount to be paid out will be less than you expected. The company Global Blue is not a charitable organization, and therefore also wants to get its piece of pie in the form of a percentage.
- When buying some goods, such as books, tobacco products (although it is unlikely that someone will buy cigarettes in the EU at sky-high prices to bring home), food (you bought a Spanish hamon Iberico for € 200, and you are not enough the fact that VAT will not be returned, so even more likely there will be problems on the border) or services (thought to ride a taxi and then get back 10%?) – VAT refund in most countries does not apply.
- Do not forget to bring your passport to the store. Because it is with him and your data will be overwritten. If you still forgot – say that fill it yourself. Without these data and the actual address of residence in the country – a check does not really help.
- Make sure that the cashier correctly fills in the information on the Tax Refund check, even the slightest mistake (the missed letter …) may be the reason for refusing to stamp when returning home. If you still made a mistake, you still should not despair.) Send the original of the bank check to the address (Global Blue Slovakia sro Centralized Services Center PO Box 363 810 00 Bratislava 1 SLOVAKIA), together with the cover letter and the most suitable way for you and the company will reissue the payment.
- Keep not only the Tax Refund check, but also a fiscal check from the store itself. As a rule, they are stapled on the cash register and put in an envelope. BUT there are different cases. Do not lose this envelope, without it nothing will come back.
- In most countries there is a temporary restriction on the VAT refund. In most countries (except for Switzerland and Liechtenstein with 30 days), the checks are valid for three months after the month of purchase.
The second step:
All done right, nowhere wrong? Congratulations! But this is not all the nuances!
- When you plan to leave for the airport, lodge + 30-40 minutes to check your checks at the customs counter. After all, you’re not the only one smart and you just want to save on your purchases. Sometimes you can even get into the queue. So be ready for this.
- After purchase, ask the consultant in the store about where you can find the Global Blue office at the airport. After all, sometimes airports are very large, such as the airport Charles de Gaulle or the German airport of Frankfurt am Main, where you can spend more hours searching for something. If the consultant is not particularly competent – Google help you!
- Keep the price tags from the purchased goods. And you do not want to hide things yourself. They may be asked to present them or price tags for verification. It does not always happen, but it’s worth taking into account.
- If there are a lot of things and you are going to put them in your luggage – first put the stamps, and then just hand over the luggage. Elementary in terms of logic, but he saw cases of the opposite.
- Bought goods must have a trade appearance – i.e. it is unlikely that you will get a refund from the check, in which the sneakers are indicated, in which you actually appeared, having overcome several mountain ridges and falling several times in the rain.
- And lastly – if you have several countries on the trip – you will be able to get a refund only in the last country of stay when you show air tickets or any other travel document, if you leave the EU not by air.
The third step:
There are prints, they returned home. What else?
According to the experience of the return in Kiev, I can say that more or less promptly and most importantly it was realistic to return money in the VTB-bank branch, but unfortunately the bank stopped providing this service. Now PravexBank and Ukreximbank are engaged in these services.
All information about addresses, phones and offices can be found on the links global-blue.com for Russia and Ukraine and other countries.
Payment is usually not every day, but only a couple of times a week. At the same time, according to the bank’s employees, it is not possible to say exactly what amount will be paid. All information appears on the day of payment. Payment is made in the process of the live queue. What does it say? What if there are several people in front of you who have a refund for example 500-800 euros – your chances are decreasing. And if you also have a similar amount, or higher, then the chances are reduced in a geometric progression. Once in front of me sat a woman with whom we talked and during the conversation I heard a figure of 1450 euros. Already was going to leave, but the question of the employee of the bank “At whom the sum to payment is less than 100 euros? Serve today, the rest come in the next. Again … “I was hopeful and in 10 minutes I was already at the ticket office and received my money.
Helpful information
Buying a tourist should not be cheaper than a certain amount and it is different for different countries. The table shows the minimum purchase amount (in the local currency of the country of purchase), the maximum refund amount from the purchase amount and the amount of VAT in the country:
For convenience, you can use the Refund-calculator, which is on the site.
Is it worth the VAT refund of all these subtleties, red tape, time, etc.? – you decide! For someone, the amount to be paid – 40-50 euros is not worth the candle, and someone for 20 euros will come to the bank branch several times and stand in line. To each his own.
