- Spanish fintech company STAMP is calling for a reform of the VAT refund system for tourists, advocating for VAT to be avoided at the point of sale.
- The current system requires tourists to pay VAT upfront and claim a partial refund later, a process seen as slow, confusing, and reliant on intermediaries.
- Despite digitalisation efforts like the DIVA system, tourists still face complexity and commissions, discouraging many from using the refund process.
- Most VAT refunds benefit the luxury sector, leaving out small and medium-sized businesses.
- Industry experts argue the system’s complexity and limited benefits reduce its effectiveness as a commercial incentive.
Source: ca.finance.yahoo.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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