MOSCOW, November 16. /TASS/. The State Duma (lower house of parliament) has adopted the law on VAT (value-added tax) refund for purchases made by foreign citizens in Russia in the third reading on Thursday.

The law on the so-called tax-free system assumes that a new provision will be added to the Tax Code allowing the citizens of countries not belonging to the Eurasian Economic Union (EAEU) to refund VAT paid on the territory of the Russian Federation.

The law also sets a zero VAT rate for services provided to foreign citizens by Russian companies, and defines a package of documents to be provided to tax authorities to confirm the viability of the use of zero VAT tax.

As reported earlier the tax-free system may be launched in Russia starting 2H 2017 - in airports of Moscow, St. Petersburg and Sochi. Russia’s Prime Minister Dmitry Medvedev said the tax-free system would be launched starting October 1, 2017.