END OF TAX FREE SHOPPING IN THE UK. Find out more what this means for merchants and partners.

Ready for Italy’s digital TFS switch

Italy to welcome Otello 2.0 by September 1st.

As Italy recently passed a new legislation to switch to its all-digital Tax Free system Otello 2.0, Global Blue is now ready to process its first digital Tax Free Shopping (TFS) transaction ahead of the mandatory date of September 1st.

What is Otello 2.0?

Otello 2.0 is a new digital system making the country’s TFS process entirely digital, from issuing the Tax Free Form, to the validation of goods through to the refund stage.

How does it work?

From the moment the Tax Free Form is issued in-store, to the validation of goods by Customs through to the refund confirmation, Otello 2.0 covers the entire TFS system the digital way.

Otello 2.0 consists of two easy flows, where the Tax Free Form issuing only takes a few seconds:

The Issuing flow, in-store:

  • The sales associate fills-in traveller’s information when issuing the form
  • Customs are sent this data in real-time
  • Otello 2.0 checks and forwards the transaction to the Tax authorities
  • Once validated, the merchant prints and gives the form to the traveller

Validation and refund flow, outside the store:

  • Upon leaving the EU through an Italian exit point, the traveller is to validate his TFS form either from a Global Blue refund counter, Customs desk or Otello 2.0 kiosk.
  • The Otello 2.0 system checks the transaction’s status
  • Once the transaction has been validated, the traveller can be refunded

What’s in for merchants?

Complete digitization of the TFS journey means merchants will have access to all data analytics gathered by Otello 2.0 to help them understand their international clientele’s shopping habits. They may also benefit from increased revenues and customer satisfaction levels as Otello 2.0 considerably facilitates customers’ entire TFS journey and in return, encourages spending. For public authorities, Otello 2.0 will enable better fraud detection and prevention.

To know more, please contact us.