Tax Free in Russia

Main article: Taxes in Russia

2021: Launch a platform for returning VAT to foreigners on purchases made in the Russian Federation

Sber"" became the operator of the system, tax free which the credit institution announced on September 2, 2021. She created the Sber Tax Free platform to return foreigners VAT to purchases made Russia in. More. here

2019: Analysis of the assortment of goods purchased under the tax free system within the first year of the pilot

On June 17, 2019, M.Video-Eldorado announced the results of an analysis of the assortment of goods purchased under the tax free system as part of the first year of the pilot (June 2018 - June 2019). Citizens of 35 countries purchased goods in stores of both chains and returned part of the VAT, leaving the territory of the Russian Federation.

The main demand among foreign citizens is smartphones, tablets, smartwatches and accessories Apple, Samsung and Huawei, headphones, portable speakers, laptops, photo, video and action cameras, gaming devices and games. Smartphones accounted for 32% of the total volume of tax free checks issued in M.Video and Eldorado, 20% were used by accessories for tablets and laptops, 10% - laptops, 9% - appliances for home and kitchen, 7% - cameras and tablets. The average check is at 51,000 rubles.

Most purchases during 2018-2019 on tax free were made by citizens of Turkey, Israel, Ukraine, Brazil and Estonia. In total, the return of value added tax was used by tourists from 35 countries, including Azerbaijan, Bulgaria, Hungary, Vietnam, Germany, Georgia, Latvia, Lithuania, India, Iceland, Spain, Canada, Kenya, Cyprus, China, the Republic of Korea, Moldova, the Netherlands, Serbia, Sudan, Uzbekistan, France, Croatia and South Africa.

The main tax free sales were expected to occur in the summer period of 2018 (Russia hosted the World Cup) and the New Year holidays. The most active during 2018 were tourists from Latin America (Argentina, Brazil, Venezuela, Mexico, Peru, Uruguay) - they made about a fifth of all purchases. The most popular products were video and cameras, accessories for smartphones (monopods, memory cards and headphones). During the year, Europeans bought mainly smartphones, laptops and tablets, and tourists from Asian countries, in addition to the above, also purchased equipment for home and beauty.

Until the end of 2019, the project to introduce the tax free system in Russia is in pilot status. Nevertheless, we see the potential in this service both in terms of increasing the attractiveness of Russia for tourists, and in increasing the traffic and turnover of retail companies. The project received a new round of development after being included in the list of Moscow and St. Petersburg, so we expect an increase in demand for this service among tourists in our stores, noted' Ekaterina Sokolova, Financial Director of M.Video-Eldorado Group '

2018

M.Video and Eldorado test Tax Free

The companies M.Video and Eldorado, which are part of the Safmar Group of Mikhail Gutseriev, are testing the Tax Free system. This was announced on June 29, 2018 in M.Video. The system will allow foreign citizens to return VAT from purchases made in the Russian Federation. As part of the national pilot stage, the Tax Free service has already been launched in 13 stores of the group, and within a few days it will launch in four more. It is planned that after the completion of the pilot, the Tax Free system will be extended to all M.Video and Eldorado stores.

As part of the pilot's Tax Free system, retail chains plan to connect 17 M.Video and Eldorado stores in nine cities designated by the Ministry of Industry and Trade of the Russian Federation as test: Krasnogorsk, Saransk, Kazan, Volgograd, Kaliningrad, Nizhny Novgorod, Rostov-on-Don, Samara and Yekaterinburg, most of which host foreign matches in 2018. Throughout 2018, M.Video and Eldorado plan to work with all four operators accredited by the Ministry of Industry and Trade of the Russian Federation: Global Blue, Premier, Hi Sky and the National Tax Free Operator.

Participation in the national pilot project is an excellent opportunity for the company to test its own IT systems and organizational capabilities of the company to quickly adapt to changing conditions and quickly implement new technical solutions. The financial and retail teams of the group were able to test and launch Tax Free in a very short time, "said Ekaterina Sokolova, financial director of the M.Video group.

As specified in M.Video, the right to VAT compensation is received by citizens of countries outside the Eurasian Economic Union (Belarus, Armenia, Kazakhstan, Kyrgyzstan), if they buy within one day in one retail organization in the amount of at least 10 thousand rubles, including tax. To do this, foreigners need to get a document issued by a retail store - a Tax Free check, put a customs office mark on it, provide a check to the Tax Free point on the border, or lower the check in a special mailbox.

Tax free system will be introduced everywhere in Russia

Russia The tax free system will be introduced everywhere, that is, the tax return VAT to foreign citizens who purchase goods in our country, the Interfax^[1] in June 2018^[2]

Tax free testing has already begun in April. Currently, foreigners can return VAT in 12 cities. According to the head of the Ministry of Industry and Trade Denis Manturov, from next year this mechanism will spread throughout the country. In addition to the two capitals and Sochi, the list includes cities in which the games of the 2018 World Cup will be held.

Relatively large purchases will be exempt from taxes: in order to receive a refund, within one day you need to make a purchase in the amount of at least 10 thousand rubles. Goods subject to excise taxes, including alcohol and cigarettes, are not subject to the tax free system. Recall that VAT is currently 18%. Experts note that it can be raised to 20%, but add that for all the advantages of the system to the law there are a number of issues that relate to its implementation in practice.

Launch Tax Free Implementation Pilot

In May 2018, the Tax Free pilot project was launched in four regions of the country: in the Krasnodar Territory, the Moscow Region, Moscow and St. Petersburg. By the beginning of the World Cup, the list of regions will be expanded. Throughout the country, Tax Free will begin to operate on October 1, 2018.

2017: Approval of the law on the introduction of Tax Free in Russia

The Federation Council approved at the end of 2017 law No. 341-FZ on the introduction of the Tax Free system in Russia. Now citizens of states that are not members of the Eurasian Economic Union will be able to compensate for part of the amount spent on the purchase of goods in the Russian Federation, RIA Novosti reports in November. To receive compensation, it will be necessary to make purchases for 10 thousand rubles during the day and issue a check for them.

It is reported that the Russian Government will independently determine the list of goods not included in the tax free system. At the moment, it is known that alcohol and alcohol-containing products, medicines, as well as other excise goods will not be included in it. It is worth noting that from January 1, 2018, the system will not work throughout the country, but only in some stores in Moscow, St. Petersburg and Sochi.

It is expected that the Tax Free system will increase sales of retail organizations due to the influx of foreign tourists, increase the tourist attractiveness of Russia and the quality of service to the level of foreign developed countries, which will also lead to an increase in trade turnover.

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