Buying goods abroad will become even more enjoyable and profitable if you manage to issue a VAT refund at the border. However, tax-free in Finland has its own rules, the violation of which leads to a refusal to reimburse the money spent. Therefore, you should familiarize yourself with them in advance and act according to the algorithm adopted in this country.
What is tax-free and what are its advantages
Tax-free (Tax Free) in translation from English means "without taxes". This is an international term used to denote a VAT (value added tax) refund system for foreign citizens who make purchases within a particular country and take them home.
This system was introduced with the aim of encouraging foreign tourists to make purchases on the territory of a particular state. Many of them even apply for a multiple-entry visa and visit EU countries solely for the purpose of profitable shopping.
The standard tax-free rules include the following:
- the buyer must not be a resident or citizen of the country of purchase of the goods;
- the minimum purchase amount is set (it can be several goods in one check);
- the list of goods subject to tax-free is limited;
- the product must not be used domestically (it cannot even be unpacked), it must be presented at customs in the package along with all the tags;
- the terms of export of goods are limited (1-3 months).
By correctly filling out the documents, you can save a significant amount.
It will not be possible to fully refund VAT, since part of the money will go to pay for the services of licensed intermediary firms with which the stores cooperate.
To find out how much interest is returned and how to issue it, the sales staff will tell you.
There are several ways to get your money back. Moreover, in most cases this will happen after the end of the trip:
- Directly at the point of sale. Such a return occurs very rarely and only when making a large purchase from several tens of thousands of euros.
- When crossing the border. This is the classic version used by most tourists.
- Upon arrival at home. In banks, in cash or on a bank card after sending the checks to the address indicated on the seller's envelope upon receipt.
Stages of VAT refund using the tax-free system
In order not to be left with anything after crossing the border, you should act according to a long-established algorithm:
- Choosing a tax-free store. If you do not find the information you need, ask the sellers and specify the size of the return.
- Registration of special receipts in the store, which are issued in addition to the standard ones.
- Refunds upon crossing the border or upon arrival at home. An important nuance: if you visit several EU countries, the payment is made upon leaving the latter.
It is not at all necessary to specify the amount from which the refund is made at each outlet: the rate is standard in the country. In Finland it is 40 €.
The approximate amount of payments is approximately 10-24% of the value of the goods.
It is necessary to take out the purchased goods from the territory of the country within 3 months.
Step-by-step instructions for tax free registration in Finland
In addition to the standard procedure for VAT refund on overseas purchases, there is a light version of it - an invoice. It is more profitable, since the amount of remuneration by the store or the intermediary is not withheld and as a result the buyer receives a full VAT refund.
In this case, the minimum purchase amount for issuing an invoice is set by the outlet independently. Another plus of this scheme is that the product can be used immediately.
To receive an invoice, you should take the following steps:
- purchase goods by paying their full cost at a sales outlet that works with an invoice;
- when leaving, put a special mark at the customs office in the documents issued by the store;
- on the next visit to the store, present the existing check and get your hands on the refund amount or use the funds for the next purchase.
The standard invoice validity period is 3-6 months - this can be specified at the point of sale.
The amount of the purchase with which the right to the invoice is granted is set by the seller himself - no requirements in this regard are provided for by law.
If such a scheme does not suit you, you should study the standard tax free registration rules.
The procedure for purchasing goods and issuing checks / tax free forms in the store
When purchasing goods in the store, do not forget about the following important rules, the observance of which will allow you to get your money back:
- the total amount of the purchase must be at least 40 € by one check for several goods or for one expensive item;
- tax-free for food and non-food products is issued separately;
- in order to receive special checks, you will need to provide a foreign passport, a cashier's receipt to a separate cashier, indicate your address of residence, allow the cashier to fill out the form and sign;
- the product must be stored in the store's packaging with all receipts and tags.
Among the outlets, look for those that have a Global Blue Tax Free or Tax Free Shopping alert on their storefront.
Passage of customs and affixing of marks
When traveling by train or bus, do not check in your belongings with purchased goods in your luggage. To pass the check and get the required stamp, you will need to present all the goods specified in the checks to the customs officers.
Inspection of purchased items is carried out by authorized employees in a specially designated place. You can put a stamp on the tax-free form in the window when checking your foreign passport.
You have the right to issue tax free when exporting goods within 3 months from the date of their purchase. You can receive a refund on checks stamped at customs within 12 months.
Receiving cash on hand
You can immediately receive funds at the border at a special point for issuing Tax Free Refunds. There may be a queue, so you should arrive at the border in advance and act promptly. The withdrawal of funds is carried out only until 22.00.
If you want to receive a refund by bank transfer to a bank card, you will need to wait 1-2 months.
Tax free refund points on the border between the Russian Federation and Finland
When crossing the Finnish-Russian border, VAT refunds can be made at several points:
- Vaalimaa - Torfyanovka. The tax-free pick-up point is located near the border. Leaving the Finnish customs, look on the right for a blue building with the inscription Global Refund. It is located about 800 meters from the Finnish customs office. Working hours: 09.00 - 22.00.
- Nuiyamaa - Lingonberry. Refunds can be made in a special building located about 100 m from the passport control point. In addition, the VAT refund point is located in the Raya-Käapä cafe, 400 meters from the border: opening hours 07.00-22.00. AO John Nurminen operates in the customs building - working hours from Monday to Friday from 08.30 to 17.30.
- Imatra - Svetogorsk. The exchange point is located in the building located at the exit from the border terminal.
- Niirala. You can get a VAT refund at the representative office of “Ityahuolinta” JSC.
- Salla. The return point is located on the territory of the Takka-Valkea hotel.
If you leave the country by train, tax refunds are possible at the following points:
- Niirala. The representative office of the "Ityahuolinta" company is located 800 meters from the Russian border. Working hours: Monday – Friday from 00:00 to 17:00;
- Vartius. Point in the cafe "Raya-Kontti" 2 km from the Russian border. Working hours: Monday – Friday from 30 to 20.00, Saturday - 10.00-18.00, Sunday - 12.00-20.00;
- Raya-Yooseppi.Representative office of Global Refund. Opening hours: daily from 14.00 to 21.00;
- Kouvola and Vainikkala. On the stretch, the return is carried out by Safar employees.
Those leaving the country by plane should check in, but do not check in their luggage. After checking the goods and receipts at a special counter at the airport, the goods are allowed to be checked in along with the rest of the belongings. Once you go through passport control, you can collect cash at Finnair or Stockmann stores.
If you are going to use the ship, tax-free refunds are made at the port after checking the receipts.
How to get funds on the territory of the Russian Federation
While on the territory of the Russian Federation, you can get a refund for tax-free in the following ways:
- by transferring to the currency account of a bank card;
- at the bank upon presentation of a special check received at the tax-free office at the border;
- to a bank card or by bank check by sending the completed tax-free form to the address indicated on the envelope issued at the outlet.
Tax free refund rules in Russia
To receive a tax refund on the territory of the Russian Federation, the following rules must be observed:
- it is necessary to contact banks and offices involved in the payment of funds by tax-free within 12 months from the date of purchase;
- you need to present two passports: an internal national and a foreign one;
- apply for payment in person.
You may be denied payment if the customs stamp is indistinct / has corrections / is present only on the cashier's receipt, the tax amount is not indicated, the cashier's receipt itself or the tax-free form is missing.
List of goods for which VAT cannot be refunded in Finland
VAT cannot be refunded on the cost of services received in Finland, travel costs / attending events or entertainment venues.
Only a few outlets in Helsinki, Kotka, Hamina, Imatra and Lappeenranta offer refunds for alcohol purchases.
The invoice and tax-free systems do not apply to books and tobacco products, so the money will not be returned to you.
Summing up
Getting VAT refunds on goods purchased in Finland is a great way to save money. The rate of value added tax in Finland for different groups of goods is not the same:
- 24% for clothing, electronics, alcohol and other consumer goods;
- 14% - for food products;
- 10% for newspapers and medicines.
Refunds are made in EURO only. You can get them at the point of issue at the border, on a bank card or at a bank that provides tax free refunds. Transferring money to a bank card may take 1-2 months.
There are a number of products that are not subject to VAT refunds. The most popular of these are books, tobacco products, and most alcoholic beverages. In addition, tax cannot be refunded on the cost of services received.
