Global Blue launches tax-free shopping scheme in partnership with Ruben Vardanyan

Global Blue, a shopping tax refund company headquartered in Switzerland, has partnered with Russian-Armenian entrepreneur and philanthropist Ruben Vardanyan, to become the first major tax free shopping provider in Russia.

RBK reports that the launch of the new service becomes possible following the adoption by of the law on the so-called tax-free system by the Russian State Duma. The legislation assumes that a new provision will be added to the Russian Tax Code allowing the citizens of countries not belonging to the Eurasian Economic Union (EAEU) to refund VAT paid on the territory of the Russian Federation.

The law also sets a zero VAT rate for services provided to foreign citizens by Russian companies and defines a package of documents to be provided to tax authorities to confirm the viability of the use of zero VAT tax.

The scheme is expected to benefit and attract a number of 'high-value' globe shoppers from Asia, particularly Chinese tourists, as well as European visitors from countries such as Germany, Turkey, Italy and the UK, according to Global Blue.

Commenting on the launch, Vardanynan stated: "The launch of Tax Free Shopping in Russia will benefit our economy, it is an important step forward on a global scale.  By offering a Tax-Free Shopping service to foreign visitors, we will increase our competitiveness as a travel destination."