Global Refund to manage Lebanon tourist refunds

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The Lebanese government has selected the Swedish Global Refund company to manage its Value Added Tax (VAT) refunds system for tourists

The company began operating on June 20 and charges participating retail stores an annual fee of L£69,000 ($46) for its refund services. Lebanon first introduced VAT at the rate of 10% in February 2002.

Taxes on purchases valued at $500 or less are reimbursed on the tourist's departure at the airport. This maximum spending limit is expected to be raised to $1,000 in the near future. VAT on purchases exceeding this limit is deposited into the traveller's bank account or sent in the form of a cheque to a specified address.

In a separate development Global Refund is completing the acquisition of Canada's Maple Leaf GST Refund Service. This system allows the estimated 16m annual American visitors to Canada to be refunded the 7% GST (Goods and Services Tax) charged on all purchases, including hotel stays (room charge only). Similar to its other global operations, tax refunds on total purchases of C$200 ($129) or more are handled by cheque or on-the-spot at Global Refund/Maple Leaf service counters in downtown Vancouver and Montreal, Montreal's Dorval airport or Whistler ski resort.

• Global Refund has local organisations and refund points in more than 30 countries in Europe, US, Singapore and elswhere in southeast Asia. More than 190,000 retailers are registered with Global Refund to provide a tax-free shopping service for customers.