New digital system will help foreign shoppers get faster VAT refunds

VAT : Spanish tax agency runs trial test with bar code forms and will set up scanning stands at major airports

A duty-free shop at Madrid airport. GETTY IMAGES

A record 68 million international travelers visited Spain last year, making this the third top destination in the world.

The tourism sector has been trying to diversify away from the sun-and-sand formula, in a bid to attract visitors who are more interested in cities and shopping than in beach bars.

With this type of customer in mind, the Spanish tax agency has launched DIVA, a project aimed at simplifying the paperwork for non-EU citizens seeking value-added tax (VAT) refunds.

Shopping tourism is of great interest, and if travelers have a satisfactory experience, Spain could position itself as a destination of reference

Lluis Llorca, Global Blue Spain

Applicants will save time by avoiding the lines to get the invoices stamped by customs officers. Instead, the invoices will be digitally recorded at the time of purchase.

The tourism and trade secretaries have worked together to streamline international shoppers’ experience in Spain. Their figures show that Britons and Germans – who make up the largest chunk of tourists – are the least interested in buying goods while on vacation.

By contrast, Chinese tourists are the biggest spenders when they go abroad. Global Blue, a tax-free shopping network operator, estimates that in 2016 the average shopping budget of a Chinese visitor to Europe will be around €3,500.

Spain only represents 5% of global spending on shopping, compared with France or Italy’s 20%. It ranks fifth in the European Union luxury market, behind France, Italy, Germany and Switzerland, according to the Spanish Luxury Association.