Russia considers launching VAT refund regime for foreign visitors

Russia is considering introducing value-added tax (VAT) refund for foreign visitors, reported Russian newspaper Kommersant Friday.

The pilot project could start as early as this year to enable foreign tourists to get a partial tax rebate on purchased goods, said the newspaper, quoting a source from a government meeting on the practice presided over by Deputy Prime Minister Igor Shuvalov.

The Russian Industry and Trade Ministry, Finance Ministry, Federal Customs Service and Federal Tax Service were told by Shuvalov to work out the detail of the system.

The tentative minimum amount of the purchase of non-food goods would be set at 10,000 rubles (about 153 U.S. dollars), while the pilot refund services could be launched at shopping centers in Moscow, the capital of Russia, including GUM shopping mall and Moscow Central Department Store (Tsum).

Following the pilot project, the system will be spread to more retailers after they meet certain pre-set conditions by government departments, said the newspaper.