Belarus to introduce Tax Free system in 2013

The system of VAT refund will apply to foreign natural persons who will be visiting the country and taking Belarus-made goods abroad. A similar mechanism is successfully used in the Baltic states. Russia is looking into it as well.

Belarus will introduce the Tax Free system to stimulate the development of inbound tourism. "The country is visited by many foreign tourists who come, in particular, for recuperation. In addition, the number of international activities in the country has increased lately. So we are working on this project to make sure it is in force on 1 January,” Ella Selitskaya stressed.

The Tax Free system is widely used in the west. The money left by tourists in a country is usually bigger than the sum of uncollected VAT. The countries often compete with each other by reducing minimum purchase sums that fall under tax refund.

The idea of the Tax Free system was initiated by the Sports and Tourism Minister Oleg Kachan. “Why in Vilnius the Tax Free system works but it does not in Belarus? Why is it a problem here?” the minister asked at a session of the Board of the Tourism Department of the Sport and Tourism Ministry in July 2011.

According to the travel industry, Belarus-made knitted goods, footwear, art pottery and furniture are especially popular with foreign tourists.

BELTA