EY backs STAMP: Real Tax Free

EY gives a name to what tax free was missing

For decades, shopping tax free in Europe has meant the same thing: pay the VAT, fill in forms, get a customs stamp, and wait weeks for a refund that often never arrives. Retailers accept it because there was no alternative. Tourists put up with it because they have no choice.

At STAMP, we have argued for years that there was a better way. Now one of the world's most recognised consulting firms has analysed it and put it in writing. Read the full case study on ey.com.

A €70 billion market losing 65% of its value

EY's diagnosis starts with the size of the problem. Shopping tourism generates around €70 billion a year in eligible in-store sales, and luxury accounts for 80% of that volume.

But the system behind it works badly. According to EY, the tax refund model is dominated by legacy intermediaries. It is slow, opaque, and charges commissions that hurt both the tourist and the retailer. The result:

• More than €45 billion in eligible VAT goes unclaimed worldwide every year.
• 65% of that opportunity is lost, because many tourists never start the process or abandon it due to red tape.

EY did not stop at describing the problem. Its EY Studio+ team worked with STAMP's leadership on the B2B strategy and the key messages of the value proposition. The goal: move beyond the "refund provider" label and position STAMP as the first technology platform with a Real Tax Free sales model.

The three pillars EY highlights

1. Instant savings at the till. VAT is deducted at the moment of payment. The customer pays the net amount and never has to chase a refund afterwards.
2. Zero financial risk for the store. STAMP places a pre-authorisation on the customer's card at registration. If the invoice is not validated at customs (DIVA system), STAMP guarantees the VAT payment to the retailer.
3. The data belongs to the brand. STAMP shares shopper data with the retailer and can run as a white-label service. An administrative chore becomes a loyalty tool.

What it means for your store

EY describes it as a virtuous circle. When tourists don't pay VAT at the till, they see that money as immediate extra spending power. And they spend it in the same store.

For a retailer, that means three concrete things:

• You sell more per customer, because the saving arrives at the moment of the purchase decision.
• You take no risk, because if customs validation fails, STAMP covers it.
• You know your customer, because international shopper data no longer stays with the intermediary.

The fact that EY Studio+ chose to tell this story confirms what our retailers already see every day: tax free can be fairer, more transparent and more profitable.

Want to know how much Real Tax Free could lift your average ticket? Talk to our team or see how it works.