Simple tax exemption procedures in Fintech (Denmark, USA) Digital solution for VAT refunds that Paisystems embarks

Pie Systems started by two young entrepreneurs in the United States.It is an IT company that develops apps for easy and convenient tax exemption procedures.Currently, Global Blue and Planet are divided into the market for the world's tax exemption procedure support services.However, the tax exemption procedure method is often the old -fashioned analog paper document procedure, and it is not unusual for a few months to be refunded.Pie Vat provided by Paisystems has been digitized the Nordic as the test market and has electronized all added value tax (VAT, indirect tax equivalent to Japanese consumption tax).The results are definitely achieved, such as increasing awareness as an app that greatly improves the convenience of travelers and stores.

Interviewed on February 1, 2021 with Marte Videvec, CEO, a CEO, who showed a rapid development in such a rapid development.He asked him about the background and current situation of Pie VAT, which started service in Copenhagen, and future Japanese expansion.It will be noted that the company's business will bring a change in consumption exemption and refund procedures in Japan.

Challenge to improve complicated and opaque procedures

Paisystems is a Fintech company in San Francisco, USA.Established by Sunny Long CEO and others.Sunny Long CEO co -worked at Massachusetts Institute of Technology (MIT) and worked in various IT companies after acquiring two masters, a computer science and an engineering at Massachusetts Institute of Technology (MIT).Starting a business.In 2018, Denmark was selected as a test market and service development started.Paisystems develops a system that performs VAT refund procedures.Digital, easy and convenient provides VAT refund services paid by travelers in other countries.

The current VAT refund procedure is one of the areas where digitization is not progressing. Despite the need for improvement in convenience, it is unclear, complicated and time -consuming for travelers. In order to receive a VAT refund, you need to obtain tax exemption documents at the tax -free member store where you are traveling. Next, when departing from a travel destination, you will receive the procedure at the customs -only counter. At that time, it is necessary for travelers to present the purchased items and receive confirmation to indicate that they will use the purchased items outside the country. After that, the tax exemption documents are posted and applied for refund. The refund is refunded to a credit card or bank transfer. In many cases, you have to wait about 1-2 months. The refund applicant cannot confirm the progress of the procedure until the deposit to the bank account or card. It is hard to say that the transparency of the procedure process is guaranteed. Paisystems will work on these issues.

Digitization and visualization of the procedure with a single app

Paisystems' service "Pie VAT" provides travelers with all VAT refund procedures in one app.There is no need for paper document procedures, the process progress is visualized, and a refund is performed within 24 hours after completing the procedure.For travelers, it is attractive because it is highly transparent and the refund progresses quickly.When purchasing products at stores, travelers use the QR code presented by the store to register purchase information at the time of purchase or afterwards.You only need to register the boarding pass information in the app, and after returning to Japan, just send a photo of a product with geotags that record geographic information.This starts the refund procedure, and the progress can be confirmed in the app.

Even after the new colon virus has become possible, the change in the hygiene concepts will continue to continue.Under such circumstances, it is also noted that all procedures can be performed without contact with others.

Use excellent design and technology

On the other hand, the merit is great for the store.Pie VAT services are available free of charge, and you can see the status of refund processes and visualized user data in real time, making it possible to analyze customer data.

Interestingly, it is designed with a very good user experience (UX, ease of use and satisfaction for users).If you already have an app on a travel destination, you can launch an app and search for merchants and product information near the current location when you are sightseeing in the city.

The good UX design usability is not because Paisystems is an up -and -coming technology company.All developments are performed in the in -house.Members include former engineers of the US IT startup "Third Love", which are considered unicorn companies, and former Google employees.

The transparency of Pie VAT has benefits not only to users and stores, but also to customs.You can check the tax exemption process properly, and you can confirm the final check, such as whether the travelers purchased are being taken out and used outside the country.Pie VAT is aiming for 100 % transaction confirmation.On the other hand, security is also paid to the security, and the use of the service requires registration on the app.

Mechanism that considers security

As a FinTech app, Pie VAT is also paying close attention to security.First, the use of the service requires the person registration on the app.This is usually almost the same as the items described in the documents to obtain a VAT refund.The registration is the passport number, the expiration date of the passport, the date of birth, the nationality, and address.In addition, as a pie VAT original security function, a selfie (self -portrait) is required, and the consistency with the passport photo is confirmed to verify identity.Depending on the situation, additional information may be required, but the registration is almost completed with these data input.

Denmark selected as the location of app service development

Denmark was selected as a place to start providing services after Paisystems was launched in San Francisco in 2018.There are several reasons for Denmark chosen.One is that Denmark is a country where social digitization is all about every corner, the VAT tax rate is high (25 %), and the tourism is moderately small.In other words, the optimal size and conditions were available to try the product.

When app development began in mid -2018, Copenhagen's development team jumped into a nearby store and called for a trial participation. Many stores are interested in services, and about 10 stores the next week. Since then, a small test has been repeated, and two years later, the number of member stores has increased to over 700 stores in Denmark. Numerous jewelry brands such as "Debit Andersen", luxury fashion brands such as "Filippa K" and "Gant", and Northern Works, and Norwegian department stores also participated. Almost confirmed. The number of merchants has been increasing since the summer of 2020, despite the corona evil. The experimental project began in two countries, Denmark and Norway, but in the future, the aim is to expand to Sweden, Finland and Iceland. We are also preparing for development in multiple EU countries with large markets.

Going to the Japanese market

Paisystems is about to enter the Japanese market.In Japan, it has been heard that travelers have a large tax -free shopping market, and Japan's tax exemption and consumption tax refunds are increasing.The most recent expansion of the consumption tax exemption and refund procedure is largely due to the Japanese government's tourism support policy.In the future, large international events such as the Olympics and Paralympics and the Osaka Expo are planned, and further visiting Japan is expected to expand.With the investment from digital garages of major Japanese venture capital (VC), we are preparing to start providing services in Japan in the future.

The challenge is to respond to the Japanese legal system different from Europe.However, the basic business model is not changed.