Global Blue and Ruben Vardanyan will create a tax free operator in Russia
The operator of Global Blue VAT refund system and the former co-owner of Troika Dialog Ruben Vardanyan announced the creation of a joint venture in Russia "Global Blue Russia", which will participate in the launch of the tax free system in the country. This is stated in their joint report. The representative refused to specify the distribution of the shares of partners in the joint venture.
The law allowing the citizens of countries that are not the members of the Eurasian Economic Union, to return VAT from purchases in Russia, was adopted last year. It is assumed that budgetary expenses for VAT refunds are compensated by increasing the tourist flow from far abroad and increasing the volume of retail turnover.
Vardanyan and Global Blue expect that the system of Russian tax free will attract "residents of countries with high purchasing opportunities, for example, tourists from the Asian region, particularly Chinese citizens, as well as travelers from the nearest European countries, including Germany, Turkey, Italy and the United Kingdom."
The report says that the joint venture of Vardanean and Global Blue will cooperate with premium shopping centers and leading brands. As Vardanyan's representative specified, negotiations with retailers are now underway.
Earlier, the representatives of the Ministry of Industry and Trade said that Moscow's GUM, Petrovsky Passage, TSUM and some other shops in Moscow, the region, Sochi and St. Petersburg can participate in the pilot project. In the test mode, the system is supposed to be launched in spring.
The model of tax compensation "Global Blue Russia" will consist of three stages: issuing a check and filling in the tax free form in a store; passing customs control and getting a mark at special checkpoints when leaving Russia; and refunding VAT through offices located in major airports. According to the law, foreigners will be able to receive a part of the VAT paid from purchases of at least 10,000 rubles during a day, presenting a check for payment of the tax.
Information source: «Global Blue и Рубен Варданян создадут оператора tax free в России», https://www.vedomosti.ru