The opportunity
90 million tourists visit France every year. A growing share comes from outside the EU: Americans, Chinese, British (post-Brexit), Japanese, Koreans, Gulf residents.
They shop. Many never claim their VAT refund because the process puts them off. Those who do claim it tend to return to the stores where they got it.
A merchant with "Tax Free Shopping" in the window captures a flow that competitors simply miss. The cost: no equipment, two minutes per transaction.
What you actually need to do
The trigger
A non-EU customer spends more than €100.01 including VAT in your store in a single day. They show you their passport. You issue a tax refund form.
Three steps at the register
- Scan the passport. Your software (provided by the tax refund operator) reads the ID page in about 10 seconds.
- Generate the form. The software creates an electronic refund form tied to the passport and the receipt. You print it or email a document with a barcode.
- Hand the form to the customer. They scan it at a PABLO kiosk at the airport before their flight.
Your job ends there. Customs validation and the actual refund go through the operator.
What the customer does next
At the airport, they scan the barcode at a PABLO terminal. Green screen means approved. The refund lands on their card within 3 to 5 days.
Choosing a tax refund operator
The operator is the company approved by French Customs that manages the entire process end to end: form creation, validation, tourist refund.
You sign a contract with one operator. They provide the software (or integration with your POS) and handle the refund payments.
What separates operators
The tourist refund rate. This is the most visible factor for your customers. French VAT is 20%, which works out to 16.67% of the VAT-inclusive price. The operator takes its margin from that amount. Traditional operators return 50 to 60% of the VAT. Belcova returns up to 80%.
Why it matters to you: a tourist who gets back €133 on a €1,000 purchase comes back. One who gets back €83 looks for a better store next time.
Merchant commission. Some operators charge you 1 to 2% on each transaction. Others, like Belcova, charge merchants nothing.
Technical integration. Three options:
- Standalone web app (runs on tablet or PC)
- Plugin for your POS software (Lightspeed, Shopify POS, etc.)
- API for custom integration
Support. When a tourist has a problem with their refund, they come back to you. You need an operator that responds quickly.
Quick comparison
| Traditional operators | Belcova | |
|---|---|---|
| Tourist refund rate | 50–60% of VAT | Up to 80% |
| Merchant commission | 1–2% | 0% |
| Tourist mobile app | Rare | Yes |
| Real-time tracking | No | Yes |
| Refund delay | 10–15 days | 3–5 days |
Legal requirements
Article 262-0 bis of the CGI
French tax law (the Code général des impôts) sets the rules for VAT refunds. Here is what applies directly to you.
You must:
- Be registered in the trade registry (RCS) and liable for VAT
- Use electronic refund forms (mandatory since January 2014)
- Keep records of every transaction for 6 years
- Verify that the customer holds a valid non-EU passport
The customer must:
- Spend at least €100.01 including VAT in a single visit
- Have the form validated at a PABLO terminal before leaving the EU (within 3 months)
- Take the goods out of EU territory
Audits
Customs conducts post-transaction audits. They can ask to see your refund form records, the associated receipts, and tourist identities.
Keep everything organised. Your operator stores the digital data, but you are responsible for your own paper trail for 6 years.
Penalties
A merchant who creates fraudulent forms — or issues them for EU residents — faces fines and suspension of their right to issue forms. Enforcement focuses primarily on high-volume abuse.
Getting started
- Contact an approved operator. Belcova, or another. The operator will send you a contract and the software.
- Install the software or app. Setup takes about 15 minutes on a tablet or PC.
- Train your team. The checkout process comes down to three steps: scan the passport, generate the form, hand over the document. A 10-minute walkthrough is enough.
- Put up signage. The "Tax Free Shopping" logo in your window tells tourists they can shop with you and reclaim VAT.
What changes for your business
Average basket size. A tourist who knows they will recover 13% of the price tends to spend more. Merchants who offer VAT refunds consistently report 15 to 30% higher average baskets from non-EU customers.
Repeat visits. Tourists share recommendations. A fast, generous refund generates word of mouth and return visits on future trips.
Cost to you. With an operator like Belcova: zero merchant commission, no equipment to buy, no setup fees. The only investment is training time.
FAQ
Do my customers pay anything extra? No. The price stays the same. The refund applies to the VAT already included in the price.
What happens if the tourist never validates the form? Nothing, on your end. The form expires after 3 months. The operator issues no refund. There is no impact on your accounting.
Can a tourist pool purchases from multiple stores? With a standard operator, no: each store has its own contract, its own forms, and no shared view of the tourist's spending. With Belcova, the tourist has a single account linked to their passport. Each purchase at a partner merchant feeds the same profile, which makes it possible to aggregate amounts and cross the €100.01 threshold even with smaller baskets spread across several stores.
I sell online. Does this apply? Only if the customer is physically present with their passport at the time of purchase. Standard remote sales do not qualify.
How long does setup take? From first contact with the operator to your first refund form: 1 to 2 weeks. Technical configuration takes about a day.
Belcova is launching soon. Become a partner.