The tax free system will function in all the Russian cities to host the 2018 FIFA World Cup Russia, reports the Russian state news agency RIA Novosti with reference to Timur Maksimov, Deputy Head of the Federal Customs Service.
The official announced that the system would start functioning well in advance, as it needed testing.
Vladimir Putin signed an order on implementing the tax free system for foreign citizens in November 2017. The law provisions partly came into effect on January 1, 2018, and the others will become operative on October 1, 2018.
The new law makes it possible for foreigners to get back VAT they paid for purchases in Russia that they take out from the country to the amount of over 10,000 rubles. The system applies to all foreigners who are not citizens of the Eurasian Economic Union countries.
Several tax free operators will work in Russia, including the Russian company Sky Finservice LLC operating under the Hi Sky brand. The Swiss firm Global Blue and the Irish company Premier Tax Free will also approach the market.