The Ministry of Industry and Trade proposed to include regions bordering China in the tax free program
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The Ministry of Industry and Trade has developed a draft resolution to expand the tax free program to the Amur and Irkutsk regions, as well as to the Trans-Baikal and Krasnoyarsk Territories. Now the VAT refund program operates in 16 regions. The document is posted on portal legal information.
In the draft resolution, the expansion of the tax free program is explained by the need to stimulate the flow of tourists to these regions. Tax free is expected to reduce tourist spending.
It is noted that in 2021 and in the first half of 2022, about 40% of purchases made by Chinese tourists were made with tax free checks.
Tax free is a pilot project to compensate foreign citizens for VAT when exporting goods outside the EAEU. It has been in force since 2018 and is renewed annually. The Ministry of Industry and Trade wants to extend the experiment until the end of 2023. The project operates in Moscow, St. Petersburg, Moscow, Leningrad, Kaliningrad, Novgorod, Nizhny Novgorod, Rostov, Volgograd, Samara, Sverdlovsk regions, Krasnodar, Khabarovsk, Primorsky territories, Tatarstan and the Mordovian Republic.
The document also notes that the implementation of the pilot project is hampered by the fact that some tourists use Mastercard and Visa cards, which cannot be used in Russia.
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