After traveling or vacationing, getting a refund on the Value Added Tax (VAT) for goods purchased abroad - who wouldn't like that? For travelers from non-EU countries, this is possible: Tax-Free Shopping is the magic word, allowing international guests to receive a partial refund of the VAT on products purchased in the EU.
"International customers frequently inquire about Tax-Free receipts from us. What are the benefits for me as a merchant to offer VAT refunds for non-EU customers, and how complex is this additional service?"
Aida, Juwelierin from Potsdam
Response from Christina Altmüller, Product Manager at Nexi
Getting a refund on the Value Added Tax (VAT) for goods purchased abroad after a trip or vacation - who wouldn't like that? For travelers from non-EU countries, this is possible: Tax-Free Shopping is the magic word, allowing international guests to receive a partial refund of the VAT on products purchased in the EU.
Benefits for Merchants and Customers
Souvenir shops, outlets, luxury department stores - they are particularly popular among foreign visitors. Catering to many customers from non-EU countries, offering Tax Free Shopping provides real value and benefits for both merchants and customers alike: Discounted prices increase the likelihood of additional purchases, thereby boosting revenue at the cash register. Simultaneously, VAT refunds aid in attracting new customers. Many tourists research participating stores online through Tax Free Shopping providers such as Planet or Global Blue before their travels. Signage promoting Tax Free Shopping at popular tourist spots further attracts passersby. If products and Tax Free services impress, international customers are likely to return for future trips. Additionally, this supplementary service can be financially rewarding for merchants through commission earnings..
Simple and fast thanks to Nexi' additional feature.
So far, the additional service at the stationary point of sale often meant a lot of effort: Merchants had to first determine whether the customer was eligible for the VAT refund and then manually fill out a multi-page document. This often led to long queues at the checkout and irritated customers, reasons why many merchants opted out of the business-enhancing service. With the Nexi Tax Free solution, the documents necessary for VAT refund are now automatically generated by the Nexi payment terminal - quickly and easily, without any additional effort for the merchant.
And here's how it works:
With the additional solution, the Nexi terminal automatically recognizes during credit card payments whether the customer is eligible for VAT refund. Then, the Nexi terminal generates the pre-filled Tax Free receipt during the payment process itself. The merchant no longer has any administrative burden and saves a lot of time. Upon leaving Germany and presenting the receipt at the Tax Free provider's service counter, the customer receives a refund of the VAT paid in the store for a small service fee. Customers can choose freely via the Tax Free provider whether they want the refund amount in cash or via credit card. In addition, Chinese customers have access to the lifestyle and payment platform Alipay.
All the benefits of the Nexi Tax Free solution for merchants at a glance:
- Increased customer satisfaction through improved service
- Stimulating impulse purchases and thus potential revenue growth.
- Automatic detection of eligibility for VAT refund during credit card payment.
- Quick and easy creation of the Tax Free receipt
- Electronic receipt
- Free choice between the Planet and Global Blue tax-free providers
For further inquiries on this topic or any other concerns, feel free to contact us by phone. We are here to assist you. We look forward to hearing from you!