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Tax Free Can be introduced in Russia


15 December 2011

Moscow, December, 15. According to "Mir", Russia is ready to make an interesting offer to foreign tourists. Foreigners who have supported the Russian manufacturers and dealers can refund the value-added tax which is usually added to the price of goods.

A private company took up the introduction of the TaxFree system popular in Europe. They have been working with taxes for a long time. The company suggests the following scheme: the buyer fills in the Passenger Customs Declaration in the shop, then fills in a package of documents at the airport, stamps them at Customs and then just at the airport sends them by post to the operator company. The latter within three months refunds the VAT on the foreigner’s account with just 15 % commission deducted.

Travellers go through the same procedure in other countries as well. As a rule such concession has a good affect on the image of the country and attracts more tourists. Indirectly the system supports local manufacturers. In fact travellers are supposed to be interested in the goods made in a host country.

However, experts still guess what foreigners could rush to Russia for, like Russians going to Milan during a season of sales? The important question is how the RF Ministry of Finance will consider the VAT refund.

The Authors of the idea promise, that the Russian budget will lose nothing. The sales tax will compensate the lost VAT. In fact sales will increase. Now, according to the statistics, over six million tourists annually visit Russia. On the average each of them spends 400 dollars for gifts and souvenirs. Probably, the minimal sum of purchase - 10 thousand rubles - for VAT refund is connected with it. It makes about $330 or EU240. It is quite more, than elsewhere.

From the Commonwealth countries and Georgia only the latter agreed on the TaxFree System. The system has been working there for half a year there. The main peculiarity of the system is that any purchase of any price is VAT refunded!

The idea of TaxFree has been discussed in Belarus for a long time. Many departments of the country supported the TaxFree System considering it as a good trade channel for the Belarus goods and inflow of currency to the country. But the Ministry of Finance did not agree on it explaining that it is necessary to change the tax laws and it is not so easy to do.

Considering the world experience for the basis, it will be necessary to create a serious system of administration. In their turn experts say, the thing is that more receipts go to the budget from the VAT (now it 20 % in the country), than from other tax payments.

Meanwhile now TaxFree System successfully operates in 300 thousand shops in 57 countries of the world. The VAT is levied in 137 states. Visitors, for example, to Western Europe, Canada, South Korea can get the VAT refund. Tourists in France, England, Italy, Singapore and Germany have the most favourable conditions, they can receive up to 25 % of the VAT.

 
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