Company ready for VAT-back ops
Swedish company Global Refund announced last week that it had been granted a license from the Finance Ministry to carry out value-added tax refunds to tourists making purchases in Poland.
On May 7, a bill was passed that gives tourists the possibility to obtain refunds from the 22% value-added tax on purchases. Global Refund started operating in late November.
The service will benefit retailers because it allows them to effectively offer discounts that don't cut into their margins, said Witold Wlodarczyk, general director of Global Refund Poland and a member of its board.
Global Refund is working with approximately 1,000 retailers in Poland. In 2000, the company foresees 1,500 more retailers joining.
Global Refund will be at border-crossing points on the German, Czech, and Slovak borders as well as at various points along the former Soviet border, and will be represented by motorist association PZ Mot. Offices will also be at Warsaw's Okecie Airport as well as Krakow's Balice Airport.
Martin Stapf, a vice president for Global Refund, estimated revenue in the first year of operation of about zl. 40 million ($9.5 million). But profit is not expected for the first couple of years.
