Tax free - what is it? How to get it and get?

Today, the Russians and citizens of other countries are increasingly traveling to foreign countries with the purpose of making some purchases. The value added tax they leave not in the bins homeland. But long ago, we know that in today's world every traveler has the opportunity to realize a profitable operation, called a Tax refund (the specific part of VAT). Tax free for the first time appeared in the 1960s in Sweden. Since then, citizens of many countries actively use such an attractive possibility to save some cash.

Entity Tax free

Tax free - what is it? As noted above, this concept implies a VAT refund. Everyone knows that the tax sent to social security companies. Thus, it is included in the final cost of any product or service. Typically, the amount of VAT varies from 9 to 20 percent, which completely depends on the individual settings of a particular state.

Why return Tax free? The answer to this question is much easier than you can imagine. The fact that tourists who have made some purchases while paying the tax, do not have time to apply the mechanisms of a social nature, as guests staying in the country a very short period of time.

Brief description

When making a purchase on the territory of another state, the tourist is entitled to receive a special cheque. When leaving the country (at customs) on this document must be stamped specifically defined for the operation in question, which will be the absolute proof that the goods exported (Free tax filing). Only after the implementation of the citizen shall be empowered to reclaim VAT. The funds can be obtain after going through customs and arrival.

Recommended

Staff evaluation: system and methods

Personnel Assessment allows you to identify how competent the employees involved in the enterprise, and it is the performance of their work – the most significant factor affecting the efficiency of the company. To clarify the impact of performa...

How to start your own business: important aspects.

Many people, tired of working for someone else, are increasingly thinking about how to start your own business. Someone wants to open a salon, someone store, and someone enough and vegetable stalls. Before you throw in the pool with his head, it is i...

Business activities. its essence and basic functions

The Entrepreneurial activity of the citizen – is undertaken at your own risk and independent activity, which aims to systematically profit through the sale of works, goods, services, use of the property. The citizen engaged in such activities, ...

It Should be noted that such a system extends to about 20 countries. In addition, the procedure of return of the VAT in all countries the same. Differ only in the constraints for the minimal cost of objects purchased on the territory of another state, as well as the validity of the receipt document.

Tax free - what is it? Current system Tax free

It is Important to note that the Commission of all transactions for VAT refund imposed on the system Tax free, endowed with a private character. They perform the function of intermediary between the tourists and the particular country. Each such system includes in its structure several shops, United in one network, and a number of offices for the return of citizens funds. It should be noted that any such system keeps the minimum fee as remuneration for such an important operation. In the world there are several systems, the largest of which is the following.

Global tax free combines 36 countries (29 of them are in Europe), including Germany, Finland, France, Hungary, Iceland, Norway, Lithuania, Latvia, the Netherlands and others. It should be noted that only seven countries corresponding to the presented system are located in different parts of the world (Japan, Argentina, South Korea and so on). Global blue tax free was founded in 1980 in Sweden. Its owner is the company Global Refund Group.

Other systems

The Set of considered systems consists of 3 units in its structure, among which are:

• Premier Tax Free, which includes 20 countries (15 of them are located in Europe), including Germany, Czech Republic, France, UK, Switzerland, Sweden, Morocco, Singapore and others. The system was founded by the developers of the company The Fintrax Group in 1985 in Ireland.
• Tax Free Worldwide has a membership of only 8 countries: Denmark, Iceland, Ireland, UK, Norway, Austria and others. It is important to note that more recently, the system merged with the discussion above, Premier Tax Free.
• Innova Tax Free and consists of six countries: Portugal, China, Italy, UK, France, Spain.

Terms of VAT refund

To Use to consider the right opportunity as foreign citizens and persons without citizenship of residence permit, work visa or refugee status in the country of purchase (they must stay on its territory not more than three months).

A prerequisite of Tax refund is the conformity of the goods to a specified list, which includes industrial products: shoes, clothing, jewelry, household goods, electronics, appliances, accessories, stationery, watches and so on. It is important to note that the system does not cover the services sector. In addition, exceptions are the transport mechanisms, food, books, precious metals (bullion Bank), precious stones, separate from jewelry, products for activities of a professional nature, and the objects purchased via the Internet.

Making check document

In the check document issued by a foreign employee of the store indicated the total cost of the goods and the amountthe value added tax, designed to return. The data is filled in by the seller or by the cash register. While the responsibilities of employees does not include filling out more information in relation to the client, but they are usually willing to do this. It should be noted that mandatory documentation must specify the credit card details in that case, if the client prefers to receive funds through this instrument. After filling in the receipt by employee of trade, a foreign citizen needs only to verify the data is correct and sign. If possible, take in-store brochure with information about the system of VAT refund (for a particular system, for example, blue Tax Free)

It Must be remembered that in any case there is a specific time period during which a particular product needs to leave the country where you purchased. Receipt of Tax-free document stamped by customs also has an expiration date.

Details

The Tax Refund (what it is, see above) does not mean that the citizen will receive the amount of such value added tax completely, because some of the money goes on fees and commissions to the intermediary and the administrative case. Against this provision, each country organized individual rules which should be followed.

If the good is purchased in one of EU countries to put the seal on a receipt need not document when leaving the country, but only when crossing the EU border. So, you may have some trouble if the citizen leaves the EU via the transit stop. It should be recalled that EU members are countries such as Poland, Romania, Netherlands, Cyprus, the Czech Republic, Austria, Bulgaria, Malta, Hungary, Croatia, Sweden and others.

Methods of return of the VAT

To Cash a check for one of the following scenarios:

• Within the airport that is the fastest way of receiving funds.
• By mail organization. So, you need to leave a receipt in the office of a certain system (Tax free in Moscow, you can obtain one from a number of existing systems). After some time, the funds will be credited to the Bank account or on the customer card. It should be noted that the operation is sufficiently long, because the period of its implementation often reaches four months.
• Through any point of issue, as a rule, in the city of residence of the client (however, this provision applies only to large-scale human settlements). It is important to note that today it is possible to arrange the operation in question, even from home, through Free online tax filing.

Interesting to know! The intricacies of return of the VAT in different countries

Appropriate to note some useful facts relevant to the design of Tax free (what are we told in the beginning of the article) in different countries.

• By check documents completed in Poland, the funds are returned solely in cash.
• When leaving Slovenia required the staging of two stamps: on the receipt and on the form Tax free.
• To obtain the value-added tax when buying wool products in Iceland the presence of a stamp on the check is not required.
• In the Netherlands, every traveler has the opportunity to reclaim the VAT even if you buy in the store that is not part of the Tax free shopping. But the prerequisite for this is the repeated return to the country.
• In Norway, the production of the stamp is made not to customs, but directly in the office system. In addition, it is the only country where they make return of the value added tax in respect of food that is more expensive than the 285 crowns.
• In German airports, the requirements: you must first register and then go to the customs. When you register be sure to notify the employee that the planned registration of Tax free. Thus, the Luggage you checked in, then return it to the owner.
• In countries such as Norway, Croatia, Finland, Sweden and Denmark, the individual dies of a national character. Therefore, receipts of these countries cannot be used in other places. So, to get part of the value added tax, the tourist can only at the airport.

An Important point in the case, if citizen suddenly forgot to put a stamp on the receipt document, is the ability to do it on arrival home in the Embassy (Consulate) of the country where the item was purchased.