How to offer tax-free shopping in your store: requirements and step-by-step guide
An international customer asks whether they can claim a VAT refund on their purchases. What do you need to check? Do you have to issue a tax-free form? Use PABLO? And who handles the refund afterwards?
For retailers, tax-free shopping can quickly seem more complicated than it really is. Yet, once everyone's responsibilities are clear, the process is fairly straightforward.
Here's what you need to know about eligibility requirements and the steps involved in offering tax-free shopping in your store, whether you choose to manage the process yourself or simplify it with Zapptax Retail.
Want to offer tax-free shopping in your store? Become a Zapptax partner.
Tax-free shopping for retailers: key takeaways
- It mainly applies to travelers aged 16 or over who usually live outside the European Union and are temporarily visiting France.
- Purchases must be intended for personal use and taken out of the EU by the traveler.
- When managing tax-free shopping directly, retailers must check eligibility and issue an export sales form (bordereau de vente à l'exportation, or BVE).
- With Zapptax Retail, the retailer issues an invoice including VAT in Zapptax's name. The traveler and Zapptax then take care of the remaining steps.
Let's look at what this means in practice for your checkout team.
Who is eligible for tax-free shopping in France?
To qualify for a VAT refund in France, customers must meet several conditions:
- be at least 16 years old;
- have their usual place of residence outside the European Union at the time of purchase;
- be visiting France for less than six months;
- purchase goods for personal use;
- personally take the goods out of the European Union.
Importantly, eligibility is based on residency, not nationality.
For example, a French citizen permanently living in the United States may qualify for tax-free shopping during a visit to France, provided they meet the relevant requirements.
When managing tax-free shopping directly, retailers must verify the customer's age and residency using valid supporting documents, such as a passport, residence permit, consular card or resident card.
With Zapptax, this is handled through the app. Travelers provide proof of residency directly in the Zapptax app.
Which purchases qualify for a VAT refund?
Tax-free shopping applies to a wide range of goods purchased in France and carried in the traveler's personal luggage, including clothing, leather goods, cosmetics, jewelry, souvenirs, electronics and more.
The goods must not be intended for commercial or professional use and must leave the European Union before the end of the third month following the month of purchase.
However, certain categories are excluded or subject to specific rules, including:
- manufactured tobacco products;
- certain petroleum products;
- certain cultural goods;
- certain means of transport;
- certain weapons and ammunition, depending on their category and the required authorizations.
Services such as hotel stays or restaurant meals are also excluded from this VAT refund procedure, which applies to goods.
For unusual products, it's best to check eligibility before confirming to the customer that a VAT refund is possible.
What is the minimum purchase amount for tax-free shopping?
In France, purchases must total at least €100.01.
Under the traditional tax-free shopping system, multiple purchases can be combined under certain conditions, including a maximum period of three consecutive days.
With Zapptax, the process works differently. Travelers can upload multiple invoices for purchases made during their stay and combine them to reach the applicable minimum threshold.
This is particularly convenient for customers shopping at several different stores.
How can retailers offer tax-free shopping?
There are two possible approaches.
| Managing tax-free shopping directly | With Zapptax Retail |
|---|---|
| Check the traveler's eligibility | Émettre une facture au nom de Zapptax |
| Collect the necessary information | The customer uploads the invoice to the app |
| Create the electronic export sales form (Tax-free form) | Zapptax handles the tax-free shopping process |
| Explain how to validate the form at Customs | The customer is guided through Customs validation |
| Track the tax-free form validation | Zapptax tracks the claim |
| Arrange the VAT refund | Zapptax refunds the traveler |
The choice mainly depends on how much of the process you want your store to handle.
Managing tax-free shopping directly with PABLO-I
Retailers who want to manage their own tax-free forms can use PABLO-I, a service provided by French Customs for independent retailers.
At the time of purchase, retailers must check certain eligibility requirements and create an electronic export sales form (called “BVE” in french or “Tax-free form”).
The BVE includes information such as:
- the traveler's personal details;
- their identity document details;
- a description of the goods;
- the price including VAT and the applicable VAT rate;
- the payment method;
- the intended VAT refund method;
- the retailer's details.
This tax-free form can then be provided to the traveler in printed or digital format.
The customer must have it validated at Customs when leaving the European Union.
What if you use a tax refund operator?
Retailers can also outsource all or part of the process to a tax refund operator.
The process still relies on an export sales form (BVE), but certain administrative tasks and follow-up procedures can be handled by the provider, depending on the service selected.
Other models also exist, including the one used by Zapptax.
And there's an important difference: with Zapptax Retail, your team doesn't need to create the tax-free form for the customer.
How does Zapptax Retail work for retailers?
The entire process can be summed up in one sentence: you issue an invoice in Zapptax's name, and Zapptax takes care of the rest of the tax-free shopping process.
In France, the invoice must include the following details:
Zapptax
23, rue Jean-Jacques Rousseau
75001 Paris
The Zapptax model is based on two successive sales: the original purchase is invoiced to Zapptax, which then resells the goods to the traveler. This allows Zapptax to handle the formalities required for the VAT refund.
Here's how responsibilities are divided:
| Étape | Qui s’en charge ? |
|---|---|
| In-store purchase | The traveler |
| Issuing the invoice including VAT | The retailer |
| Uploading the invoice to the app | The traveler |
| Preparing the tax-free form | Zapptax |
| Customs validation | The traveler |
| Follow-up and refund | Zapptax |
For your team, the process is designed to be simple and straightforward.
What document should you provide to a Zapptax customer?
In France, the key document is an invoice including VAT, issued in Zapptax's name.
It must clearly identify:
- the retailer;
- Zapptax as the buyer;
- the products sold;
- the prices excluding and including VAT;
- the VAT rate and amount.
Standard till receipts or card payment receipts should therefore not be confused with this invoice.
The rule for your team is simple: when a customer uses Zapptax in France, issue an invoice using Zapptax's billing details at the time of purchase.
There's no need to create a separate traditional tax-free form.
How does Customs validation work?
The tax-free form must be validated when the traveler leaves the European Union.
When departing from France, validation can generally be completed by scanning the barcode on the tax-free form at a PABLO kiosk.
Depending on the situation, a Customs officer may also request an inspection. Travelers should therefore keep their purchases accessible and have their travel documents ready.
The point of departure also matters.
A customer traveling through another EU country before returning home may not necessarily complete Customs formalities in France. Validation must take place at the point where they actually leave the EU.
This part of the process mainly concerns the traveler. To avoid overwhelming your team with every possible travel scenario, you can simply direct customers to our guide to tax-free forms and Customs validation.
Who handles the VAT refund?
Customs authorities validate the export of the goods, but they do not refund VAT directly to travelers.
Under the traditional tax-free shopping process, the refund is issued by the retailer or the appointed tax refund provider, depending on the arrangement.
With Zapptax, the refund is handled directly by Zapptax after Customs validation and processing of the claim.
For retailers partnering with Zapptax Retail, there are no management fees for offering the service.
What procedure should your in-store team follow?
There's no need to turn your sales associates into Customs experts.
What matters is that they know exactly what to do when a traveler asks about tax-free shopping.
When managing tax-free shopping directly, your internal procedure may involve:
- checking the customer's eligibility;
- verifying their supporting documents;
- creating the tax-free form;
- explaining where and when to validate it;
- following up to ensure the refund can be processed.
With Zapptax Retail, the instructions are much simpler:
- invite the customer to use Zapptax;
- issue an invoice including VAT with the correct billing details;
- give the invoice to the customer;
- let the customer complete the remaining steps in the app.
A clear procedure helps avoid hesitation at checkout, incorrect documents and customers being passed from one person to another.
Offer tax-free shopping without complicating checkout
Offering tax-free shopping doesn't have to be complicated for retailers. The main question is choosing the approach that works best for your store.
You can manage eligibility checks, export sales forms and follow-up yourself. Or you can simplify the process with Zapptax Retail: your team issues the required invoice, while Zapptax handles the rest.
And if the process is now clear but you're wondering how to promote this service to international customers, that's another topic worth exploring.
Discover our tips in "What if tax-free shopping became your best sales argument?"
FAQ
Do I need to change my checkout software or install any equipment?
No. Offering tax-free shopping with Zapptax doesn't require any specific IT integration or equipment to be installed in your store. Your team simply needs to be able to issue an invoice in Zapptax's name. For many retailers, this functionality is already available in their point-of-sale system.
Can I offer Zapptax if my store already works with another tax refund operator?
Yes. Zapptax can be used alongside an existing tax refund operator already working with your retail brand. This can be particularly useful when a customer prefers to use Zapptax, during busy periods or when your usual tax refund process is unavailable. It gives you greater flexibility without disrupting your existing setup.
Can customers still use my loyalty program if the invoice is issued in Zapptax's name?
Yes. Issuing an invoice in Zapptax's name doesn't prevent customers from keeping their loyalty accounts or enjoying the associated benefits. You can continue to identify customers in your system while adding the required Zapptax billing details to the invoice. Your loyalty program therefore remains compatible with this tax-free shopping process.
Does an invoice issued in Zapptax's name affect the customer's warranty or after-sales service?
Using Zapptax doesn't prevent customers from benefiting from the warranty or after-sales service applicable to their purchase. Travelers have the necessary documents to prove their purchase and exercise their rights. The traveler's name can also appear on the invoice alongside Zapptax's billing details when useful for warranty, insurance or after-sales service purposes.
