Global Blue Tax Free, how does it work?
Global Blue‘s Tax Free Shopping system can be one of your greatest allies as a retailer. When tourists make purchases abroad, one of the most attractive benefits is the ability to reclaim VAT through the Tax Free Shopping systems. This process, facilitated by companies such as Global Blue, not only benefits that participate in the program. But how exactly does this tax refund system work and how does it affect retailers?
What is Tax Free Shopping?
The Tax Free Shopping system allows non-resident tourists to reclaim VAT (Value Added Tax) on purchases made at participating merchants. This benefit, which applies only to physical products that the tourist will take out of the country, is intended to encourage shopping tourism by helping visitors to purchase products at a lower price by refunding a portion of the VAT they have paid.
It is important to note that this system only applies to tangible goods such as clothing, accessories, technology, etc., and does not include services such as accommodation, transportation, or meals.
About Global Blue
Global Blue was founded in Sweden in 1980 with the aim of simplifying the tax refund process for tourists and retailers. Over the past decades, the company has grown exponentially to become one of the most important companies in the industry, operating in more than 50 countries and working with thousands of stores around the world. In addition to facilitating tax refunds, Global Blue has incorporated innovative digital technology solutions to enhance the shopping experience for both tourists and retailers.
The company specializes in providing services that streamline the management of tax-free shopping, making the process easier and faster for everyone involved.
The Tax Free Shopping Process with Global Blue
The Global Blue tax refund process is broken down into three key steps that are designed to be simple for both tourists and businesses. Here’s how it works:
1. Shop at an affiliated store
The tourist makes the purchase at a store participating in Global Blue’s Tax Free program. At the time of payment, the customer must request the Tax Free form. If your POS system is integrated with Adyen, as is the case with Retail Pro, when the payment platform detects the card and analyzes that it may be valid to offer Tax Free Shopping, a notification will appear on the screens so that it can be offered by the merchant.
In order to benefit from this refund, the shopper must present his or her passport as proof of residence outside the country. Thanks to Global Blue’s integration with retailers’ point-of-sale (POS) systems, the process is greatly streamlined as the system can automatically scan the customer’s passport and generate the form without the need for manual data entry.
2. Customs validation
Before leaving the country, tourists must validate their Tax Free form at customs, which is done at specific points such as airports, ports or borders. To validate the form, the tourist must present it:
- Passport or identity card.
- Invoice and Tax Free form.
- The products purchased (if inspection ir required).
3. Request a refund
With the form stamped, the tourist can proceed to claim a VAT refund. There are several options:
- Cash ⭢ At Global Blue refund points located at airports.
- Credit card or bank transfer ⭢ By scanning the form at self-service kiosks or using the Global Blue mobile app.
- Digital refund ⭢ In some countries, the entire tax refund process can be completed online, making the entire process easier and faster.
Global Blue integration with Retail Pro and Adyen
For retailers, the integration of Global Blue with technology solutions such as Retail Pro Prism and Adyen is a great competitive advantage:
- Retail Pro Prism allows all tax-free transactions to be managed centrally and efficiently within the POS system, eliminating manual processes and improving the customer experience at the point of sale.
- Adyen, as a payment platform, facilitates multi-currency transactions and enables retailers to manage VAT refunds in an integrated manner, ensuring that tourists can receive their money quickly and securely.
Global Blue facilitates VAT recovery for international tourists and offers retailers an excellent opportunity to increase sales by attracting this type of customer. At Cosin Consulting, we help retailers integrate solutions like Global Blue with Retail Pro Prism and Adyen to ensure a seamless shopping experience and optimize business operations.
If you want to know more about how you can improve the shopping experience of your international customers and increase your sales, contact us to find out how we can help you!
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