10.07.2013
Beltamozhservice named Tax Free operator in Belarus
MINSK, 10 July (BelTA) – RUP Beltamozhservice has been chosen the Tax Free system operator in Belarus. Such a decision is laid down in Resolution No. 589 of the Council of Ministers dated 5 July 2013, which was officially posted on the national legal internet portal on 10 July, BelTA learned.
According to the resolution, Beltamozhservice shall refund the value added tax to individuals who do not have a permanent place of residence in a Member State of the Customs Union.
Belarus introduced the Tax Free system on 1 January 2013 as a way to return the VAT foreign nationals pay while purchasing merchandise in Belarus. The minimal purchase has to be Br800,000 to become eligible for the tax free refund. The purchase has to be made in the same store on the same day. The VAT will not be returned if the commodity is exempt from VAT in Belarus or is subject to reduced VAT (for instance, food). Excisable duties are not subject to VAT refund either.
The VAT return scheme works like this: a foreign national produces a receipt at a border checkpoint while leaving the country. The VAT will be returned as cash if there is a bank office at the border checkpoint. If there is none, the money will be returned as a bank transfer.
The Tax Free system is widely used in western countries. The money spent by tourists in a country is usually bigger than the sum of uncollected VAT. The countries often compete with each other by reducing the minimum purchase sums that fall under tax refund rule. Tax Free is a measure of state support aimed at boosting trade, small business engaged in inbound tourism. The Tax Free system has been implemented due to the rising number of international events held in Belarus and for the sake of promoting cultural, educational, and recreational tourism.
RUP Beltamozhservice was founded in 1999 by the State Customs Committee of the Republic of Belarus. It consists of 6 regional branches, and also Beltamozhkonvoi and Beltamozhizdat subsidiaries.
RUP Beltamozhservice is the largest operator on the market of logistical services of Belarus. Beltamozhservice relies the departmental logistics system incorporating the latest IT, the status of 3PL provider, and a well-developed infrastructure in all regions of the country.
According to the resolution, Beltamozhservice shall refund the value added tax to individuals who do not have a permanent place of residence in a Member State of the Customs Union.
Belarus introduced the Tax Free system on 1 January 2013 as a way to return the VAT foreign nationals pay while purchasing merchandise in Belarus. The minimal purchase has to be Br800,000 to become eligible for the tax free refund. The purchase has to be made in the same store on the same day. The VAT will not be returned if the commodity is exempt from VAT in Belarus or is subject to reduced VAT (for instance, food). Excisable duties are not subject to VAT refund either.
The VAT return scheme works like this: a foreign national produces a receipt at a border checkpoint while leaving the country. The VAT will be returned as cash if there is a bank office at the border checkpoint. If there is none, the money will be returned as a bank transfer.
The Tax Free system is widely used in western countries. The money spent by tourists in a country is usually bigger than the sum of uncollected VAT. The countries often compete with each other by reducing the minimum purchase sums that fall under tax refund rule. Tax Free is a measure of state support aimed at boosting trade, small business engaged in inbound tourism. The Tax Free system has been implemented due to the rising number of international events held in Belarus and for the sake of promoting cultural, educational, and recreational tourism.
RUP Beltamozhservice was founded in 1999 by the State Customs Committee of the Republic of Belarus. It consists of 6 regional branches, and also Beltamozhkonvoi and Beltamozhizdat subsidiaries.
RUP Beltamozhservice is the largest operator on the market of logistical services of Belarus. Beltamozhservice relies the departmental logistics system incorporating the latest IT, the status of 3PL provider, and a well-developed infrastructure in all regions of the country.