The digital age transforms tax free in Europe

28-06-24

Tourists' spending during their trips is a crucial indicator, often more relevant than the number of visitors itself. Tourism, seen from an economic perspective, represents a significant source of revenue for both businesses and administrations. An important incentive for tourists from outside the European area is the VAT refund on certain products, known as Tax Free. Traditionally, this process was tedious and bureaucratic, but digitalization has simplified and accelerated refunds, transforming the landscape.

Those retailers that have adopted innovative technology solutions to streamline the Tax Free process are at a competitive advantage. Digitization enables a faster and more efficient shopping experience, which can translate into higher sales. This summer is expected to see a significant increase in consumption in Europe, driven by events such as the Paris Olympics and the seasonality of tourism. Massive tourist arrivals could especially benefit Spain, due to its proximity to France and its popularity among Latin American travelers. In France alone, the economic impact of tourism this summer is expected to reach 3.5 billion euros.