Showing their passport in stores, filling in forms, joining extra lines in the airport… the Customer Experience of Tax Free for foreigners is slow, cumbersome, and burdens your visitor with unnecessary inconvenience.
Some countries have partially digitized their Tax Free schemes by using digital services to issue refund requests, and by installing electronic stamping systems in their borders.
This somewhat relieves travelers from some of the obstacles to their refunds, but does nothing about the poor store coverage or the disproportionately large commissions.
The root cause of this situation lies in two very specific aspect of Tax Free systems:
operational involvement of the retailer, and who is given freedom to choose a tax free operator.
Safe, fraud-free operation involves performing two vital operations at the time of issuing a tax refund request:
Ascertaining the identity of the traveler.
Ascertaining the contents and amount of the purchase.
When Tax Free systems were designed in the eighties, there was no option but to put the retailer in charge of these operations, who trained their staff to perform them at time of purchase.
In addition to retailers being put in charge of these operations, they were given the freedom to choose the tax free operator that would lead their travelers through the rest of the refund process.
This resulted in the market of Tax Free operators becoming a game in which operators compete for retailers who will be willing to sign a contract with them. And the main incentive to attract retailers is to offer them a cut from the commission. The larger the cut, the more likely a retailer will find an operator preferable.
Meanwhile, travelers don’t have any freedom of choice: if they want a refund, they have no option but to use the operator chosen by the retailer. And they will have to pay whatever commission the operator decides to charge, or else, call the whole thing off. Travelers are a captive client.
In the meantime, the benefits of Tax Free automatically become available to any traveler who an handle a sales receipt. That is, every retailer in your country, large and small.
Small commissions, universal retailer coverage, and improved experience for everybody. This is the new game of Tax Free 3.0. Who wouldn’t want that?
And take tax-free to the next level!
Write us to firstname.lastname@example.org or call +34 910 502 751 and we will address all your
questions and concerns.
Tax Free 3.0 means radically safer, easier, and fairer Tax Free for all parties involved. Make the