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Global Blue becomes the first major Tax Free operator in Russia

Offer your high-value customers Tax Free Shopping in Russia with Global Blue

Global Blue has become the first major Tax Free Shopping provider to launch in Russia meaning international customers can save up to 18% on purchases made in your Russian stores.

The launch follows the Russian Government’s passing of new Tax Free Shopping legislation 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.

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

How Tax Free Shopping works in Russia

The new legislation means that visitors from outside the Eurasian Economic Union can save up to 18% (standard VAT rate) when spending a minimum of RUB 10,000 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.

Leveraging local expertise

In order to guarantee its successful implementation, Global Blue has collaborated with renowned Russian entrepreneur, philanthropist and expert of the Russian business market, Ruben Vardanyan to open the business.

Complying with Russian Government legislation, Global Blue will implement a model with three key steps: issuing of the Tax Free Form in-store, validation of the Tax Free Form and exported goods at Customs, and refunding of the VAT thanks to a dedicated refund network across main airports. Initially based on a paper scheme, over the next 12 months digital Tax Free Form validation will progressively be introduced.

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

To know more, please contact us