WO2006022580A1

WO2006022580A1 - System for handling refund of value-added tax

Info

Publication number: WO2006022580A1
Application number: PCT/SE2005/001206
Authority: WO
Inventors: Andrea Stefano Bassi
Original assignee: Global Refund Holdings Ab
Priority date: 2004-08-27
Filing date: 2005-08-12
Publication date: 2006-03-02
Also published as: SE0402087L; SE0402087D0

Abstract

System for handling refund of sales tax. The system comprises a memory and first terminals (1 ,2,3) placed in shops (4,5,6) connected to the system. The system creates an electronic transaction on the basis of said data, Said first terminals (4,5,6) has a device (9,10,11) for capturing biometric data of the consumer for identifying the person. The system comprises computer programs for linking said biometric data to the person's purchases, and for storing the person's transaction(s) together with the person's biometric data. The system comprises second terminals (12) for capturing of the same biometric data of the consumer. The system comprises a computer program for comparing said same biometric data with stored biometric data and gathering the electronic transaction(s) linked to the stored biometric data from the database. Said second terminal (14) has a record output device for presenting said gathered electronic transaction(s) for custom control.

Description

SYSTEM FOR HANDLING REFUND OF VALUE-ADDED TAX

TECHNICAL FIELD

The present invention concerns systems for handling of refunding of value- added tax to a consumer who has purchased goods in another tax area than the area where he is resident, for example in another country than his country of residence.

BACKGROUND ART

Persons who travel to another country than their country of residence may have the right to a refund of so-called value-added tax when they purchase goods or services abroad. This type of tax is found in many countries and the rate of tax can vary in different countries. In Europe the tax rate for most countries is over 10%. For example, the United Kingdom has so-called VAT (Value-added Tax) at 17.5% on most articles. In Sweden and Denmark this tax is as much as 25% but is somewhat lower for certain goods and services. In Canada this tax on goods and services is 7% and certain provinces have a supplement for provincial taxes. In the USA most states have regional taxes in the order of 1-10%.

With the purpose of stimulating exports, these value-added taxes can in many countries be refunded to persons who are resident outside the country. A condition for this is that purchased goods are exported and used outside the country.

Hitherto, it has been very complicated for tourists and other visitors to a foreign country with value-added tax to obtain a refund of this tax. Ways of carrying out the refund vary between different countries. In some countries, visitors are allowed to apply for a refund when they leave the country, for example at the duty-free section in airports or in duty-free stores near borders. However, the visitor must gather receipts and decide which purchases are entitled to a refund. The visitor must also complete forms in foreign languages, which forms must be checked by customs officials at the same time as the purchases must be presented. The visitor must therefore queue at a refund counter and there receive the refund often in the currency of the country in question, which in turn means that the visitor must later stand in an exchange queue in order to receive his refund in the desired currency.

One example of a process for refunding value-added tax is practised in Canada. According to this process, a person who has visited the country must post from outside the country a refund form together with original receipts for all purchases. Thereafter, it takes at least six weeks before the Canadian agent handles the case and sends the refund. The refund is paid in Canadian dollars and therefore when the visitor receives the cheque, he must also change it to the currency of his own country.

Another way of refunding value-added tax (VAT) is practised in the United Kingdom. For each purchase for which a refund is possible, the visitor must prove his right to a refund by presenting his passport to the sales assistant. Certain retailers may also demand a minimum purchase before a refund can be received. Visitors must then in the shop complete a special refund form which is supplied by the retailer.

When the visitor leaves the European Community, all refund forms and corresponding goods must be presented to a customs official and the visitor receives a customs stamp on the above-mentioned form. If the visitor neglects to certify the refund form at the customs, there is no possibility of receiving a refund later.

Once outside the European Community, the visitor must post a customs- stamped refund form to each shop where the person made a purchase. The retailer will then deduct a fee and send a cheque in Euros for the remaining amount to the customer, who then can change it to a currency that can be used in his homeland.

Other countries have other special rules that must be fulfilled in order to obtain a refund of value-added tax.

As can be seen from the above, it is possible for individuals to receive a refund of value-added tax which has been paid on purchasing goods in foreign countries. However, as has been seen, it is extremely complicated for certain countries. Furthermore, the rules vary, which makes it considerably more difficult for persons visiting several countries during a trip.

The purpose of enabling value-added tax to be refunded to people who are resident in another country is of course to try to stimulate export of goods. With the aim of preventing tax fraud, different countries have chosen, as has been exemplified above, to introduce different rules which must be met in order to allow foreign visitors to receive refunds of value-added tax.

There exist service companies, which have set up businesses to enable easier handling of refunds of value-added tax for both tourists and shops. In shops which are working together with these service companies, tourists are given refund forms which have to be completed with certain personal details. Goods and forms are presented at customs and forms are provided with the requisite customs stamp. The above-mentioned companies have service points at international airports and at border stations where tourists can obtain their refund directly in the desired currency. The company then takes care of all paperwork and bills the shops.

If a customer forgets or does not have time to visit the above-mentioned service points for refunding value-added tax, the customer can also send the requisite documents to the service company afterwards. The service company can then, with the aid of the documents, deposit the tax refund in the customer's bank account or the like.

These service companies considerably simplify the procedure for tourists and doubtless considerably stimulate sales for the participating shops.

However, there is a need for further simplification for both shop-owners and tourists.

There is still a great deal of time-consuming paperwork for the shops, which, for each new customer who is perceived to be a tourist or states himself to be a tourist, must furnish refund forms and in addition must explain to the tourist how to fill them in. This time-consuming practice reduces the flow of shoppers in the shop and there is a great need to simplify the routines and reduce the paperwork.

It is still complicated for the tourists because they have to complete a new form in each new shop. Furthermore, they must keep all the receipts in order to be able to obtain a refund of value-added tax.

As is evident from the above, there is a great need for both retailers and consumers to improve the present system for refunding value-added tax to tourists.

DISCLOSURE OF INVENTION

The present invention is characterised in that the system comprises a memory, that the system comprises first terminals, which are placed in shops that are connected to the system, that each of said first terminals is provided with equipment for entering purchase data, that the system has programs for adding system-generated data to said purchase data, that the system is arranged to create an electronic transaction on the basis of said purchase data and said system-generated data, that each of said first terminals is provided with a device for capturing biometric data of the consumer, which biometric data is used to identify the person, that said biometric data identifying the consumer is stored in the memory, that the system comprises computer programs for linking said biometric data for a person to said electronic transaction(s) for the person's purchase(s), and for storing the person's transaction(s) together with the person's biometric data in the memory, that the system comprises second terminals, that each of said second terminals is provided with a device for capturing of the same biometric data of the consumer, that the system comprises computer programs for comparing said same biometric data with biometric data stored in the memory and when an identical stored biometric data is found gather the electronic transaction(s) linked to the stored biometric data from the database, and that said second terminal has a record output device for presenting said gathered electronic transaction(s) for custom control.

In contrast to earlier known system the customer does not have to fill in complicated refund forms in a foreign language and does not need to keep in order refund forms for custom control. Personal data such as name and address of the customer may be added to the electronic transaction in connection with a purchase in a store if the authority in the country in question demands such information. The customer can however also choses to enter such personal data in connection with custom control.

The electronic transaction handling and the storing of biometric data for the customer shortens the lead time for the shop. The customer is connected with each purchase via a unique reference in form of personal biometric data stored in the memory linked to the electronic transaction comprising the purchase data.

One further benefit for the shop keepers with the system in accordance with the present invention is that they do not need an extra printer for printing out refund forms to customer. Such printers are in the hitherto known system an extra cost and take up space in the shops.

The system in accordance with the invention solves the problem of having to identify the customer in the shop. A customer can make tax-free shopping also when the customer lacks his passport. A control of the person's identity can instead be made at custom control when the customer anyhow has to show his passport. The system in accordance with the invention is convenient for the customer who does not need to carry any document to verify his purchases. All data concerning the purchase and also identification of the customer is stored on the memory. All purchase data linked to the person via the stored biometric data can be collected by the toll officer.

An embodiment of the system is characterized in that said memory is arranged in a central data base.

In an alternative embodiment the system is characterized in that said memory is arranged in a smart card and that each consumer using the system is provided with such a smart card. Such an embodiment has the advantage that one does not need a central data base and connections between the data base and the terminals in the system. On the other hand with the use of smart cards the consumers have to carry such a smart card.

In an embodiment of the system in accordance with invention the system is characterized in that said smart card is provided with a microprocessor and that said program for adding system generated data is stored in said memory.

An embodiment of the system in accordance with the invention is characterized in that said device for capturing biometric data is arranged to register fingerprint.

According to another embodiment the system in accordance with the invention is characterised in that said device for capturing biometric data is arranged to register the iris of the customer.

A further embodiment of the system in accordance with the invention is characterised in that said device for capturing biometric data is arranged to register the palm of the hand of the customer.

According to another embodiment the system in accordance with the invention is characterised in that said device for capturing biometric data is arranged to take a photo of the customers body or part of the body and that the equipment in addition is arranged to register the form and the size of said customer body or part of the body.

An embodiment of the invention is characterised in that said device for capturing biometric data is arranged to register the DNA of the customer.

According to another embodiment the system in accordance with the invention is characterized in that said device for capturing biometric data is a voice recognition device.

An embodiment of the system in accordance with the invention is further characterised in that said record output device is a printer for producing one or several refund forms with information of the person's purchases, which refund forms are intended to be provided in the conventional way with a custom stamp at customs for verification of the export of the goods in question.

According to a modified embodiment the system in accordance with the invention is characterised in that the system is arranged to store in the memory information regarding which electronic transaction(s) and biometric data have been linked in order to print out forms, and in that the system is provided with barriers to prevent printing out identical forms with identical purchase data.

A further embodiment of the system in accordance with the invention is characterised in that said record output device is a display and that the system is arranged with equipment at said second terminals to complete said data on the electronic transaction with electronic custom stamps, and that the system thereafter store a correlated data set of approved purchase data and corresponding electronic custom stamps.

A further embodiment of the system in accordance with the invention is further characterised in that the system comprises third terminals which are located in refund points, said third terminals are provided with a device for capturing the biometric data for a customer, and that the system comprises computer programs for capturing custom approved electronic transaction(s) linked to the same biometric data and present said linked transaction(s) in said refund points for repayment of value-added tax.

An embodiment of the invention is characterized in that said computer program for capturing custom approved electronic transaction(s) is stored on the smart card. BRIEF DESCRIPTION OF DRAWINGS

The invention shall be described below with reference to an embodiment shown in the attached drawing, in which

Fig. 1 shows schematic a block diagram of an embodiment of the system according to the invention,

In Fig.1 a number of shops 1-3 have been shown, which shops are connected to a system in accordance with the invention and which here represent shops in one country. The shops are each provided with a first terminal 4, 5 and 6, which, via a network 7, is connected to a central database 8 forming part of the system. The terminals 4, 5 and 6 are each provided with a device 9, 10 and 11 respectively for capturing biometric data of the consumer, which biometric data is used to identify the person.

The central data base is connected via the network 7 to second terminals 12 located in toll stations 13. Each of said second terminals is provided with a device 14 for capturing of the same biometric data of the consumer. In the shown embodiment the system also comprises refund points 15, which are provided with third terminals 16. Also the third terminals in the refund points are in the shown embodiment provided with a device 17 for capturing biometric data.

The embodiment shown in Fig.1 is greatly simplified for the sake of clarity. The aim is of course that a large number of shops and stores in different countries will be connected to the system in the same way as the present system is part of an international flow. Correspondingly, a large number of customs stations 13 and a large number of refund points 15 will be included.

The following describes how the system works, with reference to a purchase example. In a shop 1 , a tourist purchases three diamonds, which together cost 100 000 SEK, and a pearl, which costs 50 000 SEK, The value-added tax (VAT) for these purchases will amount to 37 500 SEK in total at a VAT rate of 25%. The person in question is identified as a tourist, either through the person himself stating this or through the sales assistant noticing it. For example, it can be seen from the customer's debit card that he is resident in another country.

The purchase is registered in a first terminal 4, a shop terminal, forming part of the system. This can be designed in various ways. Suitably, the shop terminal has a small and compact format similar to credit card terminals found in stores. The actual registration of the purchase in the shop terminal can also take place before the person in question has been identified as a tourist with the right to a refund of value-added tax.

If the consumer uses a payment card, such as a credit card, the card number is registered in the terminal and linked electronically with the registered purchase. The registration of the card number can take place in a number of different ways depending on how the card number is stored and how the shop terminal is formed. Different alternative ways of storing the card number and corresponding equipment in shop terminals are described below.

The card number is at least written on the card with visible text, whereby it is always possible to enter the card number via a keyboard into the first terminal, the shop terminal. The card number can normally be entered quickly via the shop terminal using some kind of reader. The shop terminal may be provided with an optical reader, such as an OCR reader, whereby a number in form of a plain text can be entered automatically. The payment card number is often stored on a magnetic strip arranged on the card. The shop terminals are therefore preferably equipped with a magnetic strip reader.

Payment card numbers are on modern payment card often stored in a chip, on so called smart card. The shop terminals are therefore preferably provided with chip readers.

The shop terminal has conventional equipment, for example a keyboard and a bar code reader, for entering purchase data.

The shop terminal has software with the following functions: 1. Lets the user register purchase information in accordance with requirements in agreements and laws. 2. Lets the user register/read the card number.

3. Stores information regarding the purchase, the card and the shop on the central database 8.

Before or after entering the purchase data biometric data for the customer is captured in the device 9 connected to the first terminal 4.

The information registered in the shop terminal regarding the purchase, together with the electronically linked biometric data, which links the tourist to the current purchase, are transferred via the network 7 to the central database 8.

The purchase details and corresponding biometric data for customers are stored, as mentioned above, in the central database.

The degree of detail in the central database is decided by legal and contractual requirements. For example, the following information can be stored in the database. Shop Number Item Price VAT Card Number

1 3 Diamonds 100 000 25 000 7347 0033 0743

1 1 Pearls 50 000 12 500 7347 0033 0743

The same tourist later goes into a watchmaker's and buys a watch for 150 000 SEK, of which 37 500 is VAT. In connection with this further purchase, the biometric data for the person is registered again linked to the new purchase data. The purchase details, payment card number and the registered biometric data are stored in the central database.

The database now contains the following information as well as biometric data for the customer:

Shop Number Item Price VAT Card Number

1 3 Diamonds 100 000 25 000 7347 0033 0743

1 1 Pearls 50 000 12 500 7347 0033 0743

2 1 Watch 150000 37 500 7347 00330743

The tourist is not required to keep all the purchase receipts in order to receive the VAT refund. It is sufficient to register the person's biometric data for each purchase occasion for an unlimited number of purchases during the stay abroad in question.

In order to receive the tax refund, the goods must be presented at customs at an airport or at a border crossing. If the customs authority permits full electronic handling, the customs station is connected to the second terminal and thus to the database. At customs stations 13 the second terminals 12 are linked via the network 7 to the central database 8. The second terminals have a device 14 for capturing biometric data for the tourist. Said device 14 is preferably identical to said first device in the shops. The customer officer can via the second teminal fetch purchase data linked to the person's biometric data from the central data base. The passport of the tourist is checked data and personal data, such as name and address of the tourist are registered and stored in the central database. In addition, at the customs station there is an interface for checking the purchase data of the tourist in question, which purchase data has been gathered from the central database. Thereafter, all purchase transactions or a single purchase or, alternatively, a part of a purchase can be examined for the purpose of possible approval.

According to a suitable embodiment, purchase information for the person's purchases and the information carrier with requisite personal data given in plain text are presented on the monitor. The information can be verified and approved purchases can be marked as approved with electronic customs stamps. The verification that the transactions are approved for payment or that payment is not approved is stored in the central database.

According to one embodiment, the second terminal has software that does the following:

1. Lets the user examine the purchase data with a view to approval of a tax refund. This examination can be carried out on all purchases as a whole, per purchase occasion or per item.

2. Saves approved or not approved on the chosen level.

An overview of the sequences which take place in connection with possible customs approval of each purchase will be described below.

1. A tourist's biometric data is captured in the second terminal, which is located at a customs checkpoint. 2. Purchase data linked to said biometric is gathered from the central database and all details, such as tourist data and goods, are verified.

3. The approved purchases are marked as such. 4. The verification that the transactions are approved for refund or that a refund is not approved is stored in the central database.

5. In addition, the tourist information, such as name and address of the tourist, is optionally registered and saved.

The customs official's signing can include, for example, export date, place of customs inspection and customs officer's signature.

After verification at customs of the right to a refund, the customer, or tourist, can go to a refund point 15 that is part of the system. These are located in connection with customs stations, for example in the shopping area of an airport. At the refund points 15, there are third terminals 16, which are linked via the network to the central database 8. The staff at the refund points has access via the network to all information that is stored in the database and via computer screens can check the right of individual customers to a refund of value-added tax on purchases made abroad.

The following occurs at the refund point:

1. A customer, a traveller returning from abroad, register his biometric data in a device 17 at the third terminal. This identification is sufficient and the identity and passport number of the customer need not to be checked.

2. A check is made in the central database to establish if a customs stamp exists for the purchase in question and how much money shall be paid out.

3. The go-ahead is given to pay out the money. 4. After the payment has been carried out, this is recorded in the central database.

The refund point can also be constituted by an automatic machine (not shown) that is linked to the system's network. The automatic machine is provided with a capturing device for register the customer's biometric data. A check is made in the central database to establish if a customs stamp exists for the purchase in question and how much money shall be paid out. In order to obtain money via the automatic machine, the customer can insert a credit card for transfer of the money to an account linked to the credit card or directly receive cash.

The system in accordance with the invention is constructed to be able to smoothly handle refunds of value-added tax even for countries where the customs still require handling of paperwork which can be physically checked and provided with the requisite stamps.

If the customs authority requires customary paperwork, the second terminal can be connected to a printer (not shown) for printing out one or several refund forms, containing details of a customer's purchases and also personal details required for the customs inspection. Via the second terminal and a connection back to the database information is transferred to the database that a form has been printed out corresponding to a certain electronic cheque. The system is provided with barriers so that the same form cannot be printed out several times. The customer brings the forms and goods to the customs station where the customary inspection takes place and where purchases approved for refund of value-added tax are provided with a customs stamp. The customer can then go to a refund point to claim payment of the refund. This refund point has third terminals, which are connected to the central database. Information regarding payments which have been carried out is registered in the database.

Of course, the customer does not require visiting the refund point in person but can send in the required documents, whereafter the money can be paid out. If, for example, the refund points are at an airport, they may be closed. Alternatively, the customer does not have time to go there or perhaps cannot find the refund point or forgets to claim his refund. The device for capturing biometric data of the consumer, i.e. for later identification of a person, has not been specified in the embodiments described with reference to the drawing. Within the scope of the invention is any type of biometric identification.

The following examples of suitable known type of biometric identification devices are also specified in the following patent claims.

Examples: -Capturing device for register fingerprints.

-Capturing device for register the iris of the consumer.

-Capturing device for register the palm of the hand of the consumer.

-Capturing device for register the customer's body or part of the body

-Capturing device for register the DNA of the customer. -Capturing device for register the voice of the consumer.

-Capturing device for register a customer's print behaviour on a key pad.

All of the above mention methods for biometric identification of persons are well known and are therefore not more specified.

As the number of people requesting refund of value-added tax is rather limited registration in form of biometric data of some kind do not require a lot of data memory. The search for identical biometric data stored in the data base can therefore be performed very quickly.

Within the scope of protection is a system which lacks a central data base end instead uses smart card for storing electronic transactions and biometric data for the consumers linked to respective transaction. In such an embodiment the smart card is preferably provided with a microprocessor for controlling the system. The program for adding system generated data, such as data for controlling and presenting electronic transaction on a record output device can be also stored on the smart card as well as custom approved transactions including electronic custom stamps.

When using smart cards as memory the terminals in the system must be provided with chip readers. The central data base is not needed when using memories on smart cards.

With the expression "terminal" which is used above and in the following claims is meant a device for communication, which device has incorporated software. Examples of such devices are: pc (personal computer), telephone, PDA (personal digital assistance) and GPRS (General Packet Radio Services) for communication via GSM.

Claims

1. System for handling refund of sales tax, such as value-added tax, to a consumer who has purchased goods in another tax area than the area where he is resident, for example in another country than his country of residence, c h a r a c t e r i z e d i n , that the system comprises a memory, that the system comprises first terminals (1 ,2,3) which are placed in shops (4,5,6) that are connected to the system, that each of said first terminals is provided with equipment for entering purchase data, that the system has a program for adding system-generated data to said purchase data, that the system is arranged to create an electronic transaction on the basis of said purchase data and said system-generated data, that each of said first terminals (4,5,6) is provided with a device (9,10,11 ) for capturing biometric data of the consumer, which biometric data is used to identify the person, that said biometric data identifying the consumer is stored in the memory, that the system comprises a computer program for linking said biometric data for a person to said electronic transaction(s) for the person's purchase(s), and for storing the person's transaction(s) together with the person's biometric data in the memory, that the system comprises second terminals (12), that each of said second terminals is provided with a device (14) for capturing of the same biometric data of the consumer, that the system comprises a computer program for comparing said same biometric data with biometric data stored in the memory and when an identical stored biometric data is found gather the electronic transaction(s) linked to the stored biometric data from the memory, and that said second terminal (14) has a record output device for presenting said gathered electronic cheque(s) for custom control.

2. System in accordance with claim 1 , c h a r a c t e r i z e d i n that said memory is arranged in a central data base (8).

3. System in accordance with claim 1, characterized in that said memory is arranged in a smart card and that each consumer using the system is provided with such a smart card.

4. System in accordance with claim 3, characterized in that said smart card is provided with a microprocessor and that said program for adding system generated data is stored in said memory.

5. System in accordance with any of claim 1-4, characterized in that said device for capturing biometric data is arranged to register fingerprint.

6. System in accordance with any of claim 1-4, characterized in that said device for capturing biometric data is arranged to register the iris of the customer.

7. System in accordance with any of claim 1-4, characterized in that said device for capturing biometric data is arranged to register the palm of the hand of the customer.

8. System in accordance with any of claim 1-4, characterized in that said device for capturing biometric data is arranged to take a photo of the customers body or part of the body and that the equipment in addition is arranged to register the form and the size of said customer body or part of the body.

9. System in accordance with any of claim 1-4, characterized in that said device for capturing biometric data is arranged to register the DNA of the customer.

10. System in accordance with any of claim 1-4, characterized in that said device for capturing biometric data is a voice recognition device.

11. System in accordance with any of the preceding claims, characterized in that said record output device is a printer for producing one or several refund forms with information of the person's purchases, which refund forms are intended to be provided in the conventional way with a custom stamp at customs for verification of the export of the goods in question.

12. System in accordance with claim 11, characterized in that the system is arranged to store in the memory information regarding which electronic transaction(s) and biometric data have been linked in order to print out forms, and in that the system is provided with barriers to prevent printing out identical forms with identical purchase data.

13. System in accordance with any of claims 1-10, characterized in that said record output device is a display and that the system is arranged with equipment at said second terminals to complete said data on the electronic transaction with electronic custom stamps, and that the system thereafter store a data set of approved purchase data and corresponding electronic custom stamps.

14. System in accordance with any of the preceding claims, characterized in that the system comprises third terminals (16) which are located in refund points (15), said third terminals are provided with a device for capturing the same biometric data for a customer, and that the system comprises computer programs for capturing custom approved electronic transaction(s) linked to the same biometric data and present said linked transaction(s) in said refund points for repayment of value-added tax.

15. System in accordance with claim 14, characterized in that said computer program for capturing custom approved electronic transaction(s) is stored on the smart card.