Retail export scheme

What is a refund agent?

A Value-Added Tax (VAT) refund agent provides a tourist or a traveller with a refund of VAT incurred on purchases in accordance with the rules of the scheme.

The refund agent may act as the principal in relation to the supply of goods to the tourist or traveller by making a purchase of the goods concurrent with their supply by the retailer to the tourist or traveller. Such refund agents will enter into agreements with the retailers to facilitate them acting as principals.

Alternatively, the refund agent may simply act as an agent of the tourist or traveller in obtaining for them a refund of VAT paid on purchases of goods in the State.

The process whereby the refund is provided may differ depending on whether the refund agent is a principal or an agent.

You must also obtain approval from Revenue if you operate a VAT Off scheme.

What is the role of a VAT refund agent?

You are an agent of the tourist or the traveller engaged to obtain a refund of VAT on qualifying purchases. You set out the full requirements necessary to obtain a refund in advance of any purchase of goods by the tourist or the traveller.

You should also advise the tourist or the traveller of any fees you will charge, expressed as a monetary amount, or as a percentage or fraction of the total refund. This will include the fees that relate to procuring the refund on behalf of the tourist or the traveller. Provision of this information as part of a sign-in process on your website fulfils this requirement.

You can issue a ‘card’ to the tourist or traveller for purchasing qualifying goods. The card should record the details required for the scheme. The card should be capable of producing details of all purchases for the purposes of the certification of exports. However, any such card scheme has to have prior approval from your Revenue office.

Your entitlement to apply the zero-rating to a sale only applies where all the conditions of the scheme are met.

What information must you have to process a VAT refund?

You must have the following information before you can process a VAT refund:

• evidence that the applicant for the refund is a tourist or a traveller
• complete documentation in relation to each supply of qualifying goods
• evidence that the tourist or traveller has left the European Union (EU) with the goods (see certification of exports).

You must make the refund to the tourist or the traveller not later than 25 working days from the time you receive the information listed above.

What exchange rate should you use?

Where a refund is being made in a currency other than Euro, the rate of exchange you should use is either:

• the official rate of exchange as published by the Central Bank of Ireland for the date on which the refund is given
  or
• the official monthly average rate of exchange as published by the Central Bank of Ireland for the month in which the refund was given.

Other internationally recognised exchange rate sources may also be used, subject to the agreement of your  Revenue office.

Next: Certification of exports in the State