Lower limit for tax-free shopping to attract non-EU tourists

The Estonian Finance Ministry’s decision to slash the minimum amount eligible in the shops for VAT exemptions to a third of its value should bring benefits to the economy. At the moment, tourists from outside the European Union can claim back VAT from goods bought in Estonia if the total amount of a purchase from one establishment is more than EEK 2,000 (EUR 128). The Ministry of Economic Affairs and Communications has made a proposal to the Ministry of Finance to lower the amount to EEK 600. That could cost the state around EEK 3 million in lost VAT revenue, but the hope is that more than this amount will be earned back through tourism.

 

Postimees, 2009-04-21