Paper-based manual form filling and long queues at airports' tourist refund counters will soon be history as governments around the world are starting to deploy digitalisedGoods and Services Tax (GST) refund schemes for tourists. In Asia, Singapore recently launched the world's first Electronic Tourist Refund Scheme (eTRS) with Global Blue. Anne Pemmakitti, vice president, Asia Pacific Sales, Global Blue, talks to Retail in Asia about the scheme, highlighting what retailers should do to enhance the tax-free shopping experience for their customers. 

RIA: What is the challenge for traditional GST refund procedure?

Anne Pemmakitti (AP): The traditional GST refund procedure is complex and time consuming. In Singapore, tourists are confronted by different types of GST refund application forms generated by the retailers and are required to manually fill in those forms. Before leaving the country, the tourists also need to submit the forms to Singapore Customs at the airport, get the forms stamped, and queue at different counters to claim the cash refund. All these procedures will take as much as 20-30 minutes, depending on the amount of claims to be processed and the number of tourists queuing at the refund counter. 

RIA: How can eTRS improve tourists' GST refund experience?

AP: As the world's first government to implement the electronic GST refund system, Singapore is positioned as a premier tourist destination by offering a hassle-free shopping experience and easy refund claim process. From May to end October 2011, over 147,000 stamped transactions have been conducted smoothly via eTRS in the country.

Overall, tourists are satisfied with their shopping experiences and the improvements brought by eTRS. eTRS has enhanced consistence and convenience at purchases. UndereTRS, tourists can simply use a credit card as a token to which all their purchase details will be tagged automatically. They are no longer required to fill in the application forms for GST refund.

The system has also boosted higher efficiency and flexibility in the refund process. eTRS automates all the GST refund processes and greatly reduces the time from 20 to 3 minutes (by at least 80 percent) for manual form-filling and long queues. All it takes is a quick swipe of one's passport and credit card at the eTRS self-help kiosks to retrieve records of the purchases, followed by a few keystrokes to instruct the system to pay the GST refund into a specific credit card account.Tourists may also choose to claim cash refunds, which will only take an additional 2 minutes.

RIA: Can you talk us through the system and the partnership with Wincor Nixdorf? How does eTRS work?

AP: Global Blue is partnering with Wincor Nixdorf in the implementation of eTRS. While Global Blue is responsible for offering technological solutions to link up multiple Central Refund Agencies and independent retailers on a common platform, Wincor-Nixdorf is the provider of the self-service kiosks at the airport with their expertise in kiosk technology.

Under eTRS, travellers just need to follow three simple steps in order to claim for tax refund:

Step 1 – Get it: If a traveller shops and the purchase value is higher than SGD100 (USD77), an eTRS ticket will be issued to him. He then needs to present a token of some sort, for example a credit card, to which all his purchase details will be tagged automatically. 

Step 2 – Stamp it: When the traveller departs, he can use the self-service kiosks at the airport with his token (the credit card). All his tax-free purchases are stored in the system. The kiosk will examine the tourist and the purchases and decide if manual inspection is required or not.

Step 3 – Cash it: The traveller will then have to decide on how he prefers to be refunded. If credit card is selected, the system will automatically refund the money to the credit card. If cash is preferred, the traveller has to go to the Centralised Refund Counter and requests cash.

RIA: How will eTRS benefit retailers?  

AP: eTRS is user-friendly and robust. Deploying an electronic system will significantly reduce processing time and administrative steps for retailers as well as the chances for errors such as missing signatures from retailers on paper receipts or misplacing receipts. 

With the success of the pilot programme from May to October 2011, eTRS will be fully implemented in Singapore by August 2012 to create a consistent platform across the nation to facilitate both retailers and tourists. By then, the paper-based system will cease and all retailers will be able to harness the benefits of eTRS. 

RIA: What should retailers do if they want to participate in eTRS?

AP: Retailers interested to participate in eTRS can either operate the scheme on their own or engage the services offered by any of the Central Refund Agencies (CRA) such as Global Blue.

RIA: What is Global Blue's plan on this programme's development?

AP: Singapore's eTRS is an extension of Global Blue's Electronic Tax Free System (eTFS) which has been rolled out in a few European countries. Building on its success in Singapore, Global Blue will deploy electronic refund systems in another 10 countries around the world in the next two years. 

RIA: Global Blue invented the concept of Tax Free Shopping 30 years ago. How does Global Blue help shoppers and retailers to improve their Tax Free Shopping experience? Can you explain this with some examples?

AP: As an expert in tax-free shopping, Global Blue helps shoppers to save money by taking care ofthe entire GST refund process on their behalf: completing the necessary paperwork, handling reconciliation with authorities and settling payment in their preferred format.

Global Blue works with over 270,000 of the world's favourite brands, stores, and hotels, and helps them to maximise their share of business from the lucrative globe shopper market. With the last 30 years of experience in tracking foreign customer spending patterns and analysing the behaviours, Global Blue has effectively bridged the gap between businesses and international travellers and produce unparalleled levels of marketing intelligence for business growth.

Global Blue's product portfolio in addition to Tax-free Shopping includes:

The Global Blue Intelligence Family: The newly launched suite of business and marketing intelligence products to help retail, hospitality and leisure sectors to maximise their share of business. 

Global Blue Currency Choice: The dynamic currency conversion allowing tourists to pay in their credit cards' currency directly at point of sales.

Global Blue Academy: The front-line staff training and education enhancing their knowledge and confidence to create an outstanding experience for foreign visitors.

OneInterface: Global Blue's software application that seamlessly integrates payment systems, payment terminals, stock management systems, banks and acquirers and value-added services such as tax refund and dynamic currency conversion.

Global Blue Consulting Services: The consultancy service that helps merchants to attract international shoppers and expand into new markets.

Global Blue Marketing Services: Assisting merchants to increase business with international customers, Global Blue's Marketing Services offer unprecedented opportunities to target globe shoppers. Global Blue can help merchants to target them at every stage of their journey, from planning their trip, through the booking stage, at the airport, in-flight, at their hotel, or even while exploring their destination via our smartphone app.

Anne Pemmakitti is the vice president, Sales of Global Blue in Asia Pacific. In this capacity, she is responsible for achieving the sales organisation's business objectives across Asia Pacific countries. Pemmakitti has been in this role since April 2009.

Global Blue is a financial services company that makes retail transactions between merchants and their foreign customers, easier and more rewarding for everyone. Having invented the concept of Tax Free Shopping 30 years ago, Global Blue now offers a wide range of services that help consumers shop and spend wisely when they are in foreign countries, and merchants and banks increase their revenues from the lucrative traveller market.

Taking Stock is Retail in Asia's column dedicated to showcasing opinions and providing advice from experts in the retail industry.