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Global Blue launches Tax Free Shopping in Russia


Russian stores can now offer international customers savings of up to 18%, as Global Blue becomes the first major Tax Free Shopping provider to launch in Russia

How will Tax Free Shopping attract high-value customers in Russia?

New legislation means visitors from outside the Eurasian Economic Union can save up to 18% (standard VAT rate) when spending a minimum of 10,000 rubles (approximately €145) on a wide variety of goods, including fashion, technology, watches and jewellery, or 10% on other goods, including food, medicine and books, by reclaiming the VAT on their purchases when they leave the country.

Global Blue is collaborating with Ruben Vardanyan, renowned Russian entrepreneur, philanthropist and expert on the Russian business market, to open the business in the country.

Affiliated Global Blue merchants will immediately benefit from its pioneering digital innovations, for example Mobile Customer Care and the new Shop Tax Free app, as well as advanced payment solutions with Alipay, UnionPay, Visa and Mastercard, which are key to helping retailers attract and retain this valuable customer base.

The scheme launches with the affiliation of premium department stores, shopping malls and iconic brands across seven cities, including Moscow, Saint Petersburg and Sochi, with further roll-out taking place throughout 2018.

Benefits to Russian stores

The Russian Government passed the new Tax Free Shopping legislation at the end of 2017, in order to cement the country’s position as an international shopping destination and further attract the valuable globe shopper market.

The scheme is expected to boost local retail trade by increasing the purchase power of a number of high-value globe shopping nationalities visiting Russia. These include Asian tourists, in particular Chinese, as well as shoppers from nearby European countries including Germany, Turkey, Italy and the UK.

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