As a result of a partnership between REDUNIQ and Global Blue, the world leader in managing Tax Free operations, businesses will now be able to issue Tax Free forms at their payment terminals. REDUNIQ Smart.
As part of REDUNIQ's strategy of supporting the digitalisation of Portuguese businesses over the last few years, the installation of the Tax Free application on a terminal that is fully mobile, digital and adaptable to the specific characteristics of each sector of activity, as is the case with the REDUNIQ SmartThis will not only make it easier for companies to manage their businesses in an integrated way and save time and resources (paper forms will be replaced by digital communication), but it will also bring greater convenience to the entire VAT purchase and refund experience, a component that is much appreciated by tourists visiting Portugal.
Tax Free: what is it?
In a free translation, "tax free" means "free of taxes" and, in practice, it consists of a benefit that can be enjoyed in Portugal by citizens resident outside the European Union, allowing them to obtain a refund of Value Added Tax (VAT) on purchases made in national territory.
For someone to benefit from the Tax Free scheme, they must fulfil the following four requirements:
- You must have a tax residence outside the European Union;
- Your purchases must not be of a commercial nature;
- The value of each purchase, per invoice, must be equal to or greater than €50 (net of tax);
- You must leave the EU with the goods in your personal luggage by the 3rd month following the purchase.
Thus, tourists, who are the target audience for this benefit, can buy Tax Free products in shops marked with the "Tax Free" sticker.
Tax Free: how to join?
If, until now, a business that wanted to offer the Tax Free service to its international customers had to make payments by TPA in your establishment and hire the service from one of the companies that offer Tax Free in Portugal, such as Global Blue. Now, with the partnership between REDUNIQ and Global Blue, the process has become even simpler. TPA Android REDUNIQ Smart TAX Free is now available automatically and free of charge.
If your business would like to subscribe to this service, please contact us on 21 313 29 15 or by e-mail at reduniq.comercial@unicre.pt or contact your sales manager. Once you've signed up, you're ready to publicise Tax Free in your establishment.
How does Tax Free work in Portugal?
After entering a shop with the "Shop Tax Free" sticker, tourists must inform the employee that they want this service at the time of purchase. To do this, they must present their passport or another document that is officially recognised as valid, in order to confirm that they live outside the European Union.
If, until now, the employee had to hand over a form to fill in at this point, with the Tax Free app on REDUNIQ Smart payment terminalThis step, as well as the issuing of the form, will now take place entirely digitally.
The form which, thanks to the partnership between REDUNIQ and Global Blue, holidaymakers can save on their smartphone as well as manage their refund, including linking a credit card for automatic reimbursement.
DCC - Currency Conversion
The incorporation of Global Blue's Tax Free app into the TPA Android REDUNIQ Smart is not, however, the only service for foreign customers that REDUNIQ offers on its payment terminals.
Proof of this is the DCC - Currency Conversion REDUNIQ offers Portuguese businesses with physical or online shops the opportunity to receive payments in their customers' home currency in a transparent, informed and secure way, and to accept payments from customers all over the world, without any barriers or complications, thus offering consumers the chance to better evaluate their purchase. In addition to the advantages for customers, businesses also have the added bonus of receiving additional revenue associated with the service, since REDUNIQ shares the markup with the business.
This function is extremely simple. At the time of payment, the DCC - Currency Conversion recognises the home currency of your customer's Visa or Mastercard and, if the payment is eligible for DCC, the amount is shown in the home currency and in euros, as well as the exchange rate. In the end, it's up to the customer to decide which currency they prefer to pay in.
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