VAT refund innovation at Milan Airports aims to unleash 25% more spending power

A pilot programme aims to maximise Duty-free shopping opportunities by enhancing the VAT refund process at Milan’s Malpensa Airport Terminal 1 and Milan Linate Airport.

Avolta, a global travel experience company, and utu, a travel fintech firm, have launched a pilot program aimed to address the estimated US$ 4 billion in VAT refunds that go unclaimed each year. This initiative aims to provide travelers with 25% more spending power by converting city-side VAT refunds into duty-free vouchers.

Starting in June 2024, these vouchers, worth about 25% more than the original refunds, can be easily accessed via utu’s web solution on smartphones. The program allows travelers to complete the usual tax refund process before departure, thereby maximizing the use of VAT refunds and boosting airside Duty-free sales.

The program launch will be supported by a strategic marketing campaign and on-ground ambassadors to educate travelers. The industry will closely monitor the impact of this initiative, which could serve as a growth blueprint for travel retail worldwide.

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