Retailers in central Moscow will take part in pilot project testing tax free system

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It is noted that the expansion of the list will contribute to the growth in production and sales of those goods which are in demand among foreign tourists

MOSCOW, September 18. /TASS/. Prime Minister Dmitry Medvedev signed a resolution to expand the list of participants in the pilot project on VAT compensation to foreign citizens when they export goods they purchased in Russia. The relevant document was published on the government’s website on Tuesday

“The signed decree expands the list of participants of this pilot project. In particular, it includes Moscow retailers located on the streets of Kuznetsky Most, Nikolskaya, Bolshaya Dmitrovka, Petrovka, Novy Arbat and Stoleshnikov pereulok,” according to the explanatory note to the resolution.

It is noted that the expansion of the list will contribute to the growth in production and sales of those goods which are in demand among foreign tourists, as well to a general increase in the incomes of the tourism industry.

About tax free system

On February 12, Russian Prime Minister Dmitry Medvedev signed a decree on introducing a tax free shopping pilot program at airports in four Russian regions. The document comes into force from the date of its official publication, with the pilot regime lasting until December 31, 2018.

Russian cities have tested the free tax system since April 10. The cities that hosted the 2018 World Cup were the first ones to take part in the project. It is planned that from 2019, the tax free system will become effective in all cities of Russia.

The tax free system allows foreign nationals who are not members of the Eurasian Economic Union to receive a refund of VAT paid when purchasing goods on the territory of the Russian Federation when taking them outside the Eurasian Economic Union.

Tax free applies to goods purchased within one day for an amount not less than 10,000 rubles ($146). However, the refunding of VAT (18%) will be incomplete – only 10-12%. In order to return money, foreigners should present their passports to a tax free operator with at the airport, a cash receipt and the items they bought. After that customs officers will put an appropriate mark.

 

 

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