Russia introduces tax-free
Ministry of finance of the Russian Federation has elaborated a legislative draft according to which foreign citizens will be able to reimburse VAT from purchases within Russian territory.
The right to return this tax will be granted to citizens of foreign countries-non-members of the Eurasian Economic Union. They will be required to demonstrate passport and cheque confirming the purchase and bring those purchases out of EAEU. VAT reimbursement will not be applicable to excisable goods except of alcoholic products.
Ministry of finance estimates additional federal budget expenses on tax-free implementation to be around 150-200 mln rubles per year. Expenses of customs and tax agencies will make around 200 mln rubles once-off and about 150 mln rubles per year. It is expected that those budget expenses will be compensated by increase in tourist flow and growth of retail turnover.
Launch of this legislative draft is scheduled for the 2nd part of 2017. At the beginning, it will be possible to return VAT in airports of Moscow, Saint Petersburg and Sochi.
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