Economy

The Ministry of Industry and Trade offers to return VAT from purchases of foreign tourists

V. Evtukhov. Deputy Minister of Russian Industry. Photo: press-office of Minpromtorg

According to the press service of Russian Ministry of Industry and Trade, 25 January 2017, the Ministry sent to the Ministry of Finance the proposal to launch pilot tax free system in Sochi, St. Petersburg and Moscow. This system means the refund of Value Added Tax from the purchase of goods at authorized outlets.

In other words, the customer buys the item in the store from the list of participants tax free, populates the required documents, authorizes them in the store, and when leaving the country receives the money by agreed method (usually by card or cash at the airport). The amount of VAT varies from 0% to 18%.

Viktor L. Evtukhov, state Secretary, Deputy Minister of Industry and Trade said: “the Decision on introduction of “tax free” we expect in the near future. At the moment we have developed and submitted for consideration to the Finance Ministry all the necessary documentation”.

The Ministry of industry and trade has already accumulated a lot of requests from those wishing to participate in the program. And the Deputy Minister assured that after the pilot “tax exemption” the Ministry will establish the timely approval of authorizations with the Ministry of Finance of the Russian Federation.