Why doesn't Tax Free work in Belarus?
Foreigners still cannot get part of their money back at the border although the Tax Free system was introduced in Belarus on January 1.
A new Tax Code allowing foreigners to get the VAT back with the help of the Tax Free system came into power on January 1. It is 20% of the cost (minus the interest the bank receives)!
The goods affected by the Belarusian TAX Free are clothes, perfume, home appliances, carpets, etc.
We headed for best-known Minsk shops to look at our Tax Free in the first working days of 2013.
“We have never been asked about it before. We have not been told about it yet," the shop-assistant of Minsk GUM jewellery department was surprised.
We did not find any TAX Free emblems in the department store - only discounts. The conditions are the same for Belarusians and foreigners.
We asked the administration of GUM about Tax Free.
“It has not been implemented here yet. The law has come into power but the Ministry of Trade has not sent the documents to us," chief administrator Iryna Kurs explained.
Tax Free does not work, but there are Christmas discounts
Foreigners cannot get their VAT back in TSUM either.
“The Tax Free system has not been implemented yet. We were surprised to learn it from the news too," noted the trade department. – We had a council in connection with it in autumn. There are certain documents that have to be filled in. We will learn about it all today and special employees will be charged with it. It has not reached us yet."
Press secretary of the Ministry of Taxation Syarhei Shkut explained that the law would work in any case.
Tax Free will be introduced in shops and the VAT will be returned at the border or in foreign banks – agreements will have to be signed for it.
Syarhei Shkut: "The procedure will be finally defined by a decree discussed by the Council of Ministers now."
To benefit from Tax Free one needs to make a purchase within one working day for 800 thousand roubles or more. Being members of the single customs area, Russians and Kazakhstani will not be able to make use of the service.
The system will not affect tobacco and alcohol.
Tax Free is expected to be launched within the next few months.
But it is not clear whether Belarusians will be able to sign agreements with foreign banks quickly enough so that people could get their VAT back abroad.
