Tax Free Shopping is a powerful tool to close a sale. Turn visitors into shoppers.
Did you know? A Global Blue study shows that Tax Free Shopping is the number one service expected by Chinese travellers when they shop abroad.
What is Tax Free Shopping?
Governments waive VAT/GST for goods bought by international visitors to encourage foreign travellers to spend more.
Tax Free Shopping (TFS) enables these Globe Shoppers to reclaim VAT on the purchases they take with them at the end of their trip.
In Europe, depending on the country, Globe Shoppers can get a refund of up to 19% of their purchased amount, a good incentive for them to spend more in your store.
What is the role of Global Blue?
Global Blue manages each tax refund for you, so you can forget about the administration and focus on selling.
How does that work?
The process varies country by country as the regulations differ.
In general the process works this way:
- The Globe Shopper pays the full price for their goods at the store, including VAT.
- You provide the Globe Shopper with a Tax Free Form (system supplied by Global Blue) with the details of the purchase and amount spent.
The Tax Free Form is an offical document and enables the Globe Shopper to claim back the VAT on their purchase when they leave the country.
- On departure, the Globe Shopper presents the goods together with the completed Tax Free Form and their passport to a Customs officer, who will stamp the form to validate the export of the purchased goods.
- The Globe Shopper can then get their money back by visiting a Global Blue Refund Office or sending the Tax Free Form back to Global Blue.
- You then deduct the refunded VAT from your periodic tax return.