Tax-free shopping refers to the opportunity for customers to purchase goods or services without paying any tax normally collected at retail, such as sales tax, Goods and Services Tax, value added tax, or consumption tax.
Tax-free shopping (TFS) allows shoppers to reclaim the VAT (Value-Added Tax)/GST (Goods and Services Tax) they have paid on their shopping in foreign countries. Promoting the tax rebate and making it easier for tourists to claim it back, has helped to attract travellers to many countries. Fifty of the 130 countries that levy VAT/GST allow foreign visitors to have their taxes reimbursed. TFS is subject to national regulations, such as minimum spend and restrictions on the types of products on which it can be claimed. Refunds can only be claimed on goods which are exported. However, buying goods tax free whilst on holiday does not mean travellers are exempt from paying applicable taxes on their purchases when they get home.
Approximately 52,000 people benefit each day from tax free shopping around the world. Tax-free shopping services are available from more than 320,000 stores in 40 countries worldwide.
Read more about Tax-free Shopping: Tax-free Shopping Territories, Tax Refund Service Providers, Refund, Tax-free Shopping in The European Union, Tax-free Shopping in The United States, See Also
Famous quotes containing the word shopping:
“The most important fact about our shopping malls, as distinct from the ordinary shopping centers where we go for our groceries, is that we do not need most of what they sell, not even for our pleasure or entertainment, not really even for a sensation of luxury. Little in them is essential to our survival, our work, or our play, and the same is true of the boutiques that multiply on our streets.”
—Henry Fairlie (1924–1990)