The implementation of a Tax Free Shopping (TFS) system will boost Russia’s retail industry.
Global Blue has become the first major Tax Free Shopping provider to launch in Russia. The partnership with Ruben Vardanyan, the Russian entrepreneur, philanthropist and expert of Russian market will ensure a successful implementation.
In the joint venture with Mr. Vardanyan, Global Blue will partner with premium department stores, shopping malls and iconic brands among Moscow, Saint Petersburg, Sochi and four other cities to offer the service during its initial pilot phase.
The news comes as Russian Government approved a Tax Free system in 2016 to cement Russia’s position as an international shopping destination and further attract the valuable Globe Shopper market.
How Tax Free Shopping works in Russia
The new legislation means that visitors from outside the Eurasian Economic Union can save up to 18% when spending a minimum of RUB 10,000 (approximately 145€) on their fashion, technology, watches and jewellery purchases when leaving the country.
On other items such as food, medicine and books, Globe Shoppers will be able to claim 10% of their purchase.
Attracting high-value Globe Shoppers
The TFS scheme is expected to benefit and attract a number of high-value Globe Shopping nationalities, like Asian tourists, as well as shoppers from nearby European countries including Germany, Turkey, Italy and the UK.
See press release here