WO2005057453A1

WO2005057453A1 - System and method for handling of refunding of value-added tax

Info

Publication number: WO2005057453A1
Application number: PCT/SE2004/001833
Authority: WO
Inventors: Markus ÖSTLUND
Original assignee: Global Refund Holdings Ab
Priority date: 2003-12-11
Filing date: 2004-12-10
Publication date: 2005-06-23
Also published as: WO2005057453A9; WO2005057453A8; SE0303326D0

Abstract

System and method for handling of refunding of sales tax to a consumer. Comprising smart cards (1) with a first memory (4), and first terminals (7) in shops (5) connected to the system for communication with the smart cards (1), and also means for input of information to the first memory (4). The smart cards (1) contain information concerning the holder's region of residence. Said first terminals (7) have a terminal memory (14) with rules for refunding sales tax and compare details regarding the cardholder's region of residence with the rules. If said rules are met, the first terminal (7) transfers purchase information to the first memory (4) and creates a first signature and adds this to the first memory (4). Second terminals (9) located at customs inspection points (8), communicate with said smart cards (1) in order to check the first signature and are connected to means for presentation of information stored in the first memory, whereafter a customs inspector can check goods against purchase information and add a customs stamp to said presentation if the customs clearance is approved and whereafter the consumer can obtain a refund of sales tax for approved purchases. The invention also concerns use of smart cards.

Description

TITLE

System and method for handling of refunding of value-added tax

TECHNICAL FIELD

The present invention concerns a system for handling of refunding of sales tax, such as value-added tax to a consumer who has purchased goods in another tax area than the area where he is resident, which system comprises a smart card belonging to each respective consumer, with at least a first memory for storing information, and first terminals, which are placed in shops connected to the system and equipped for communication with smart cards and also have means for input of information to the first memory.

The invention also concerns a method for refunding sales tax and use of smart cards in systems and methods for refunding sales tax.

BACKGROUND ART

Persons who travel to another country than their country of residence may have the right to a refund of so-called value-added tax when they purchase goods or services abroad. This type of tax is found in many countries and the rate of tax can vary in different countries. In Europe the tax rate for most countries is over 10%. For example, the United Kingdom has so-called VAT (Value-added Tax) at 17.5% on most articles. In Sweden and Denmark this tax is as much as 25% but is somewhat lower for certain goods and services. In Canada this tax on goods and services is 7% and certain provinces have a supplement for provincial taxes. In the USA most states have regional taxes in the order of 1-10%.

With the purpose of stimulating exports, these value-added taxes can in many countries be refunded to persons who are resident outside the country. A condition for this is that purchased goods are exported and used outside the country. In certain countries, such as Canada, a refund of value-added tax can also be obtained for tax on things other than products, such as tax on hotel rooms. Hitherto, it has been very complicated for tourists and other visitors to a foreign country with value-added tax to obtain a refund of this tax. Ways of carrying out the refund vary between different countries. In some countries, visitors are allowed to apply for a refund when they leave the country, for example in transit areas at airports or near borders. However, the visitor must gather receipts and decide which purchases are entitled to a refund. The visitor must also complete forms in foreign languages, which forms must be checked by customs officials at the same time as the purchases must be presented. The visitor must therefore queue at a refund counter and there receive the refund often in the currency of the country in question, which in turn means that the visitor must later stand in an exchange queue in order to receive his refund in the desired currency.

One example of a process for refunding value-added tax is practised in Canada. According to this process, a person who has visited the country must post from outside the country a refund form together with original receipts for all purchases. Thereafter, it takes at least six weeks before the Canadian agent handles the case and sends the refund. The refund is paid in Canadian dollars and therefore when the visitor receives the cheque, he must also change it to the currency of his own country.

Another way of refunding value-added tax (VAT) is practised in the United Kingdom. For each purchase for which a refund is possible, the visitor must prove his right to a refund by presenting his passport to the sales assistant. Certain retailers may also demand a minimum purchase before a refund can be received. The visitor must then complete, in the shop, a special refund form which is supplied by the retailer.

When the visitor leaves the European Community, all refund forms and corresponding goods must be presented to a customs official and the visitor receives a customs stamp on the above-mentioned form. If the visitor neglects to certify the refund form at the customs, he will have no further opportunity of receiving a refund.

Often, goods have already been checked in and the customs official can certify the documents even if all the goods are not presented.

Once outside the European Community, the visitor must post a customs- stamped refund form to each shop where the person made a purchase. The retailer will then deduct a fee and send a cheque in Euros for the remaining amount to the customer, who then can change it to a currency that can be used in his homeland.

Other countries have other special rules that must be fulfilled in order to obtain a refund of value-added tax.

As can be seen from the above, it is possible for individuals to receive a refund of value-added tax which has been paid on purchasing goods in foreign countries. However, as has been seen, this is extremely complicated for certain countries. Furthermore, the rules vary, which makes it considerably more difficult for persons visiting several countries during a trip.

The purpose of enabling value-added tax to be refunded to people who are resident in another country is of course to try to stimulate export of goods. With the aim of preventing tax fraud, different countries have chosen, as has been exemplified above, to introduce different rules which must be met in order to allow foreign visitors to receive refunds of value-added tax.

There exist service companies, which have set up businesses to enable easier handling of refunds of value-added tax for both tourists and shops. In shops which are collaborating with these service companies, tourists are given refund forms which have to be completed with certain personal details. Goods and forms are presented at customs and forms are provided with the requisite customs stamp. The above-mentioned companies have service points at international airports and at border stations, where tourists can obtain their refund directly in the desired currency. The company then takes care of all paperwork and bills the shops.

If a customer forgets or does not have time to visit the above-mentioned service points for refunding value-added tax, the customer can also send the requisite documents to the service company afterwards. The service company can then, with the aid of the documents, deposit the tax refund in the customer's bank account or the like.

These service companies considerably simplify the procedure for tourists and doubtless considerably stimulate sales for the participating shops.

However, there is a need for further simplification for both shop-owners and tourists.

There is still a great deal of time-consuming paperwork for the shops, which, for each new customer who is perceived to be a tourist or states himself to be a tourist, must furnish refund forms and in addition must explain to the tourist how to fill them in. This time-consuming practice reduces the flow of paying customers through the shop and there is a great need to simplify the routines and reduce the paperwork.

It is still complicated for the tourists since they must fill in a new form in each new shop. Furthermore, in order to receive a refund of value-added tax, they must keep all the receipts in order. As has been shown above, there is a great need from the point of view of both retailers and consumers to improve the present system for refunding value-added tax to tourists.

WO 00/42546 suggests a system for simplifying the refunding of value-added tax. The said system comprises an advanced transaction card, which is intended to cooperate with card terminals to execute the purchase transaction and generate transaction data. An application for a tax refund is stored directly on the transaction card, which is arranged to calculate the tax refund corresponding to the entered purchase data. However, the system suggested in WO 00/42546 is not realistic because it does not take into account the requirements of different countries for checking of transactions regarding refunding of tax. Essential data, such as the cardholder's passport number and home address, is also difficult to store on the transaction card since these details must be able to be changed, for example if the card holder changes his home address. For the individual consumer it is regarded to be inconvenient to have yet another "credit card" to look after and carry with one on trips abroad.

In countries with sales tax, shopkeepers are required to pay sales tax for sold goods to the tax authority and also to enter transactions in their books for the purposes of tax inspection. This does not feature at all in the system and method in accordance with WO 00/42546. Instead, it is stated that, with the aid of the system in accordance with this publication, the retailer will achieve the advantage of avoiding handling tax payments for purchases which have an entitlement to a refund of sales tax and also avoiding entering such purchases in their books. This is considered to be unrealistic. Furthermore, it is not stated in this publication that consumers must present goods at customs, which implies that a refund of sales tax can be obtained without the goods being exported. Thus, the system and method in accordance with the said publication have obvious deficiencies with regard to security and invite tax fraud.

Thus, there is a need for a realistic and, in comparison with the system and method according to the above-mentioned publication, considerably safer system and method which simplify the administration and reduce the paperwork in connection with refunding of sales tax. DISCLOSURE OF INVENTION

A system of the type mentioned in the introduction is characterised according to the invention in that the smart cards contain information about the holder's area of residence, that said first terminals have a terminal memory with information regarding current rules for refunding sales tax, that said first terminals contain software for comparing said information about the holder's area of residence with said current rules in order to establish whether the purchase in question meets the rules for the entitlement to refund of sales tax, that, in the case of purchases which meet said rules, the first terminal is arranged to be directed by said software to transfer purchase details comprising type of goods and price to the first memory, that said software is arranged to produce a reference unique to the current purchase and to create a first digital signature unique to the current purchase based on at least unique purchase information and to add this reference and first digital signature to the purchase information in the first memory, that second terminals located in border areas, such as at customs inspection points, are provided with software to direct communication with said smart cards for automatic checking of the authenticity of the first digital signature, that said second terminals have or are connected to means for presentation of information stored in the first memory, whereafter a customs inspector in said border area can check purchased and presented goods against purchase information stored in the first memory, and that the second terminals have software for generating and adding a customs stamp in the form of a digital second signature to said presentation if the customs clearance is approved and whereafter the consumer can receive a refund of sales tax for approved purchases.

Several advantages are achieved by means of the system in accordance with the invention compared with previously known systems. Adding the first digital signatures in connection with purchases means that purchase information stored in the first memory cannot be manipulated. The smart cards contain information about the card holder, purchase data and digital signatures, while all the conditions for purchases which have an entitlement to refund of sales tax are stored on terminals which belong to each shop/store. Thus, the consumer can use his card without needing to make changes or updates to it depending on which conditions are valid for tax-free purchases in different countries. In addition, special conditions can be tailor-made for each shop, for example concerning minimum purchase amounts for entitlement to refund of sales tax.

Furthermore, the system provides shops/stores connected to the system with a simpler administration of purchases with entitlement to refund of sales tax. Said shops avoid detailed handling of forms and do not even have to think about refunding sales tax if the customer has an initiated smart card with details entered regarding the card holder's country of residence.

In accordance with one embodiment, said first terminals are also arranged to compare said purchase information with said current rules in order to establish whether the current purchase meets the rules for entitlement of refund of sales tax.

In accordance with another embodiment, the invention is characterised in that the second terminals have means for entering a customs stamp in the form of a second digital signature in the first memory in connection with customs-checked and approved purchase information.

In accordance with a further embodiment, the invention is characterised in that the system comprises third terminals located at refund points, which terminals are arranged to communicate with the smart cards and thus verify said second digital signature. In accordance with another embodiment, the invention is further characterised in that said third terminals are also arranged to verify the first digital signature.

In accordance with another embodiment, the invention is further characterised in that the third terminals are provided with software for automatically recording refunds of sales tax connected to said unique reference for a purchase.

In accordance with another embodiment, the invention is further characterised in that the second terminals are arranged to present the > purchase information in the first memory on a monitor together with the first digital signature in plain text, enabling a customs inspector to check the information on the monitor against purchased and presented goods and to manually check that the plain text of the first digital signature corresponds to unique purchase information for the purchase in question.

In accordance with a somewhat modified embodiment, the invention is characterised in that the second terminals are arranged to present purchase information with an approved first digital signature in the first memory on a monitor, enabling a customs inspector to check the information on the monitor against purchased and presented goods, and that the second terminals are arranged, in the case of an error in the first signature, to give an error indication, for example in the form of an indication on the monitor and/or in the form of a sound-signal.

In accordance with another embodiment, the invention is further characterised in that the second terminals have means for adding a customs stamp in the form of a second digital signature.

In accordance with a further embodiment, the invention is characterised in that the second terminals have, or are connected to, a printer and have software for printing out refund forms containing purchase information and said first digital signature in plain text, enabling a customs inspector to check the information on the refund form against purchased and presented goods and also to manually check that the plain text of the signature corresponds to purchase information unique to the purchase in question and wherein approved refund forms are provided with customs stamps.

In accordance with a further embodiment, the invention is characterised in that the second terminals have, or are connected to, a printer and have software for printing out refund forms containing purchase information, enabling a customs inspector to check the information on the refund form against purchased and presented goods, and in that the second terminals are arranged, in the case of an error in the first digital signature, to either give an error indication on the refund form or give an error indication on the monitor or in another way, wherein approved refund forms are provided with a customs stamp.

In accordance with one embodiment, the system according to the invention is characterised in that information about the country of residence of the card holder is stored in the first memory.

In accordance with another embodiment, the system according to the invention is characterised in that the card holder's name, passport number and passport-issuing country are stored in the first memory on each respective smart card.

In accordance with another embodiment, the system according to the invention is characterised in that the card holder's home address and preferred form of repayment, such as desired currency, bank account or card number for repayment, are stored in the first memory on each respective smart card. In accordance with another embodiment, the system according to the invention is characterised in that said first digital signature is also based on the card holder's name and/or passport number.

In accordance with another embodiment, the system according to the invention is characterised in that said first digital signature is also based on the unique reference for the purchase in question.

In accordance with another embodiment, the system according to the invention is characterised in that said reference comprises an identification of the shop.

In accordance with another embodiment, the system according to the invention is characterised in that the first digital signature comprises an identification of the shopkeeper.

In accordance with another embodiment, the system according to the invention is characterised in that the second digital signature comprises an identification of the customs inspector. This person is either a customs official or a person who is approved for this function from a service company which collaborates with shops/stores in order to facilitate refunding of sales tax with the aid of the system according to the invention.

In accordance with another embodiment, the system according to the invention is characterised in that a program comprised in the first terminal is arranged for asymmetrical encryption for forming the first digital signature, said signature being encrypted with a first encryption key and only readable with a second key, for example in said second terminals.

In accordance with another embodiment, the system according to the invention is characterised in that a program comprised in the second terminal is arranged for asymmetrical encryption for forming the second digital signature, said signature being encrypted with a third encryption key and only readable with a fourth key, for example in said third terminals.

As mentioned above, use of the first digital signature provides good security against manipulation of the purchase information. Use of the second signature further entails that fraud in connection with the customs inspection is not possible.

The method in accordance with the invention is primarily characterised in that first terminals, located in shops and stores and designed for communication with smart cards, are used for storage in a terminal memory of current rules for refunding sales tax, that purchase information is entered in said first terminals, the purchase information containing in the usual manner information regarding sales tax, that a smart card containing a first memory is provided with information about the cardholder's country of residence, that for each purchase said information about the cardholder's country of residence is compared with said current rules in order to establish if the purchase in question meets the rules for entitlement to refund of sales tax, that in the case of purchases which meet said rules, purchase information comprising type of goods, price, sales tax and a reference unique to the purchase in question are stored in the first memory on the consumer's smart card, that a first digital signature is created in said first terminals, the plain text of which signature contains unique information for the purchase in question, that this signature is fed into the first memory in connection with the purchase information in the first memory, that customs inspection points are provided with second terminals, which are designed to be able to communicate with said smart cards and reproduce a presentation of the purchase information stored in the first memory, that purchased goods are presented by the consumer at the customs inspection point and that the consumer's smart card is read in the second terminal in order to check goods against the purchase information stored in the first memory, in addition to which the authenticity of the first digital signature is checked in order to ensure that the purchase information has not been tampered with, and that, if said checks show that the goods correspond with the stored purchase information and the first digital signature verifies the purchase information, a refund of sales tax is approved by the customs inspector.

In accordance with another embodiment, the method in accordance with the invention is characterised in that, for each purchase, entered purchase information is also compared with said current rules in order to establish if the purchase in question meets the rules for entitlement to refund of sales tax.

In accordance with another embodiment, the method in accordance with the invention is characterised in that software in the second terminal is used to automatically check the authenticity of the first digital signature.

In accordance with another embodiment of the method according to the invention, said method is characterised in that the first digital signature is presented in plain text on said presentation and is there compared with purchase information in order to verify said information and the authenticity of the signature.

In accordance with a further embodiment, the invention is characterised in that the approval of the purchase information, the first digital signature and the presented goods is verified by a customs stamp in the form of a second digital signature, which is created in the second terminal and stored in the first memory in connection with the purchase information for the purchase in question.

In accordance with another embodiment, the invention is characterised in that identification of the shop/store is stored on the smart cards in connection with purchase information registered for a purchase. In accordance with one embodiment, the method in accordance with the invention is characterised in that refund of sales tax is paid out at refund points via third terminals, which are arranged to communicate with said smart cards.

In accordance with another embodiment, the method in accordance with the invention is characterised in that information about transactions made in third terminals is sent to each respective store/shop where purchases corresponding to said transactions have been registered, whereafter each respective store/shop can claim a refund of sales tax from the tax authority.

Use of smart cards for handling of refunding of sales tax is characterised according to the invention primarily in that each of said smart cards is equipped with a semi-conductor part comprising a microprocessor with a first memory, that said smart card bears tourist details comprising at least country of residence and possibly also area of residence for the cardholder, that first terminals in shops/stores are arranged to communicate with the smart cards and for this purpose comprise means for input of information to the first memory on each smart card, that purchase information for purchases registered in said first terminals and there found to meet the rules for refund of sales tax is stored in the first memory, that said smart cards also bear a first digital signature confirming each respective purchase, which signature is entered via a program in the first terminal and the plain text of which contains purchase information unique to each purchase, and in that second terminals at customs inspection points are arranged to communicate with said smart cards in order to check the authenticity of the first digital signature.

In accordance with another embodiment, the use according to the invention is further characterised in that, after approval by customs, the first memory is provided with a customs stamp in the form of a second digital signature via a program in said second terminals. In accordance with a further embodiment, the use in accordance with the invention is characterised in that, in order to check purchase information and the second digital signature and possibly also the first digital signature, the smart cards are arranged to communicate with third terminals, which are located at refund points in connection with customs inspections points, for example at airports.

DESCRIPTION OF THE FIGURES

The invention shall be described in greater detail below with reference to an embodiment which is shown on the attached drawings, in which

Fig. 1 schematically shows an embodiment of a smart card for use in the system according to the invention

Fig. 2 schematically shows an embodiment of the system according to the invention.

A smart card 1 in accordance with the embodiment shown in Fig.1 is equipped with a semi-conductor part 2 of the type serni-conductor chip. The smart card shown is of a type with a chip 2 which has a built-in microprocessor 3 and a memory part in the form of a first memory 4. With the aid of a program, for example Java, which is downloaded onto the card 1 the chip 2 can be directed to carry out certain functions. These can either be initiated according to the user's wishes or the functions can be predetermined by the card issuer. Access to the chip 2 is gained via a card interface of known type (not shown).

The card is a part of the system according to the invention for refunding value-added tax, which will be described in more detail below with reference to Figs. 1 and 2. The card can also be designed to handle further functions in addition to refunding of sales tax. For example, the card 1 can also be designed to handle the credit and payment functions which previously known credit and debit cards have handled. Furthermore, the card can, for example, be connected to payment of fares when travelling on public transport. The smart card suitably has the form and size of conventional credit cards and is provided with a card number (not shown). The card number can suitably be compiled in the same way as on a credit card, i.e. so that the country of issue can be seen from the number. It is suitable that the cardholder's name is stated on the card in plain text.

Fig. 2 shows a shop 5, which shop 5 is connected to a system in accordance with the invention. The shop 5 is provided with a registration terminal 6 of the cash register type and a first information-transferring terminal 7.

A customs station 8 with a second information-transferring terminal 9 is also shown in Fig. 2. Refund points 10, which are provided with third information- transferring terminals 11 are also included in the system in accordance with the shown embodiment.

The embodiment shown in Fig. 2 is greatly simplified for the sake of clarity. It is of course intended that a large number of shops and stores in different countries will be connected to the system in accordance with the invention in a similar way as systems in accordance with previously known technique belong to an international flow. In a corresponding manner, a large number of customs stations 8 and a large number of refund points 10 are also included.

There now follows a description of how the system works, in connection with a purchase example.

A consumer in the form of a tourist from Mexico who is resident in the USA possesses a smart card 1 as described above which is configured to belong to the system for refunding sales tax, such as value-added tax, in accordance with the invention.

The customer purchases in a shop 5 in Sweden goods which in this case are constituted by three diamonds together costing 100 000 SEK including VAT and a watch which costs 50 000 SEK including VAT. The sales tax in the form of value-added tax, known as VAT, will be 30 000 SEK in all for this purchase at a VAT rate of 25%. The purchase is registered by a sales assistant with the aid of the register terminal 6, which is a cash register of known type. Payment for the purchase can, for example, be carried out as a card purchase or the goods can be paid in cash. In this example with a tourist who possesses a smart card belonging to a system in accordance with the invention, it is assumed that the card also functions as a debit card. After completion of the purchase transaction, which purchase transaction, in the example shown in Fig. 2, takes place in the cash register, the question remains as to whether the customer is entitled to a refund of sales tax. If the customer, as in this case, speaks a foreign language, it is natural that the sales assistant should bring up the question as to whether the customer is entitled to a refund of sales tax. Often, the customer is of course aware of this and brings up the question. Suitably, the smart card is designed in such a way that the sales assistant sees at once that it is a card which can entitle the customer to a refund of sales tax. After registration of the purchase, the card is inserted into a first interface 13 in the first information-transferring terminal 7, which comprises a first terminal microprocessor 14 with software that is developed to communicate with the smart card 1. The first information- transferring terminal 7 also comprises software for handling the integral parts of the card which are included in the system for refund of value-added tax. The first information-transferring terminal 7 comprises for this purpose a first terminal memory 14', which, among other things, is programmed with current laws and regulations for purchases with entitlement to a refund of value- added tax in the tax region in question. The first terminal also comprises the possibility for the operator to interact and possibly complete purchase information. For this purpose, the terminal has a user interface in the form of a display, or monitor, with a keyboard. Alternatively, the keyboard can be included in the display, which would then be touch-sensitive. This means that the operator, for example, can specify the description of the purchased goods and also add a reference, such as a receipt number, which identifies the purchase transaction. In the next step, the first information-transferring terminal 7 fetches information from the card 1 if the holder is resident in a tax region other than that in which the current transaction is taking place.

If a consumer uses an already initiated card, the country of residence is registered on the card, for example in the form of a country code. If the consumer uses a card which has not yet been initiated, the first six digits of the card number are used to identify the country in which the card was issued. This form of identification is commonly used also for conventional credit cards. The smart card in the system in accordance with the invention may also be designed to serve as a credit card. The country of issue is assumed provisionally to be synonymous with the country of residence of the holder. This will be checked at a later stage, as is described below.

It is of course a basic criterion to the entitlement to a refund of value-added tax that the consumer should be resident in another tax region than that in which the purchase takes place. Other criteria can also be set. These can vary from country to country and from shop to shop.

Examples of criteria that have to be fulfilled are listed below:

- The card 1 shall show that the consumer is resident in another tax region.

. The goods shall have entitlement to a refund of value-added tax. (For example, a stay in a hotel has entitlement to a refund of value-added tax in Canada but not in Sweden).

- The tax-free purchase shall exceed a minimum amount set by the shop. - The goods shall be exported out of the tax region where the purchase takes place before a certain date.

A smart card belonging to the system in accordance with the invention must be initiated with customer information specific to the cardholder before it is used for purchase transactions. This initiation can take place in connection with the consumer's first purchase in a foreign country.

In order to show all the steps included in the system, it is assumed in the described purchase example that the tourist, a Mexican resident in the USA visiting Sweden, has an uninitiated card, i.e. a card onto which data concerning the holder has not been entered. The fact that the card has not been initiated thus means that this is the first time the card has been used for a purchase with entitlement to a refund of value-added tax. The initiation takes place at this first purchase, and does not then require to be repeated as long as entered data regarding the holder does not require to be altered.

The monitor belonging to the first terminal 7 shows the shop assistant the following text:

Is the customer resident outside the EU?

I . Yes

2. No

We begin by establishing whether the consumer is resident in another tax region than that in which the purchase is taking place. The fact that the card was issued outside the EU does not necessarily mean that the person does not live within the EU. If the answer to the question is "Yes", the system continues with the next step. Otherwise, the procedure is discontinued. In our case answer "1" is given, whereupon the following text is shown on the monitor:

Shall the purchased goods be exported before the end of October? I . Yes

2. No

We continue by establishing that the goods shall be exported within a stipulated period, as in this example before the expiry of the third month from the purchase. As this question is asked at this point, the shop does not need to initiate the card if the consumer is not going to export the goods which are being purchased there, since in that case a refund of value-added tax would not be appropriate. In our case the answer is "1", whereupon the following text is shown on the screen:

Choose country of residence

1. USA

2 Other, show list.

If the country of residence corresponds to that which can be deduced from the card-issuing country, the shop assistant chooses it by pressing 1. If the country of residence should be another one, a list is shown, whereupon the shop assistant chooses the right country from this list. In our case the country of residence was the USA and the shop assistant therefore answers "1", whereupon the following text is shown on the display:

Passport-issuing country

1. USA

2. Other, show list.

In this case the passport had been issued in Mexico and the shop assistant therefore chooses "2", whereupon the following text is shown on the display:

Passport-issuing country Andorra Afghanistan

Antigua and Barbuda

Anguilla

Albania Armenia

Angola

I Argentina I

The user moves down the list and chooses Mexico. The following text is then shown on the display, or monitor.

State passport number:

When the passport number has been registered, all the necessary information for this example has been gathered, whereupon the information is saved on the card. The card is now initiated and this procedure does not need to be repeated. The first purchase can now be registered as will be described in connection with the purchase example shown below.

It has been described above how the initiation of the card is carried out. If a customer has a card which has already been initiated the following is shown as a first step on the monitor.

Shall the purchased goods be exported before the end of October?

I . Yes

2. No This is a valid question as this is a condition which must always be fulfilled. Irrespective of whether this is a first purchase with simultaneous initiation of the card or if it is a later purchase with an initiated card, the registration of the purchase transaction continues in the following way:

The monitor now shows the following text:

Choose product.

1. Diamonds

2. Pearls

3. Gold bracelet

4. Watches >»

In the terminal configuration in accordance with this example we have no connection between the cash register 6 and the first terminal 7. This means that we must either specify a receipt number or register descriptions for the purchased goods. In an alternative configuration, both may be required. The shop assistant chooses "1" for "Diamonds" whereupon the following text is shown on the display:

State number.

Diamonds:

The number of diamonds being purchased is of decisive importance in enabling the customs official to assess the validity of the export document. If it merely says "Diamond 100 000 SEK" the number of diamonds can be 1 ,2 or 1000. A customs official may or may not be knowledgeable with regard to the value of diamonds. In the given example "3" is entered, whereupon the following text is shown on the display:

State price for: 3 Diamonds

As a final step, the price of the diamonds to be exported shall be stated. The shop assistant enters "100 000 SEK". The following question is now shown:

Register more goods?

I . Yes

2. No

As the consumer in this case has also purchased a watch for 50 000 SEK, the shop assistant chooses "1", whereupon the procedure starts again from "Choose product". This and the following steps are then repeated until all the goods for which VAT is to be refunded have been registered, in this case only once for the watch. Then the answer to the question "Register more goods?" will be "2", i.e. "No". The following text will be shown on the display:

Sign transaction

3 Diamonds 100 000

1 Watch 50 000

State signature code: ***^*

When all items have been registered the transaction is signed and the information is saved on the card memory.

In the case in question the information which is saved could be: • date and time

• shop's VAT number

• shop's ID number for the service company that handles the refunding of value-added tax shop assistant's ID for the shop

• transaction ID

In addition, the following details for the transaction are saved on the card memory:

Finally, a digital signature is created by selected parts of the above information stored on the card being encrypted with the shop's private key.

In the example, the criteria are fulfilled and the tourist accepts a refund of value-added tax. Thereafter, a check is carried out as to whether the card 1 is initiated, i.e. if the tourist's details have been entered. If this is not the case, for example if this is the tourist's first purchase, using the card 1 , that is entitled to a refund of value-added tax, this is indicated, whereafter the shop assistant enters the requisite data into the first memory 4, the card memory, in order to initiate the card 1 to become part of the system for refunding of value-added tax in accordance with the invention. This data can be constituted by:

Name

Address

Passport number - Passport-issuing country

Method for refunding the money in question When this data has been entered, it does not need to be entered during further purchases in other shops, but will only require to be adjusted if a detail is changed or a new card is issued.

Next, the following purchase information can be entered into the card memory 4 via the information-transferring terminal 7:

Transaction ID (unique number for each purchase, intended for identification of purchase)

Possible receipt number of receipt received by tourist for purchased goods

- Purchased goods - identification (e.g. designation and price)

Sum to be refunded

Date

The information can be entered, for example, by the register terminal 6 (the cash register) where the purchase was registered being arranged to communicate with the first information-transferring terminal 7 and to transfer the data entered into the cash register 6 to the first information-transferring terminal 7. Such a connection 16 is shown with a broken line in Fig. 2. If, for example, the register terminal 6 and the first information-transferring terminal 7 are not arranged for such communication, the shop assistant enters requisite data into the first information-transferring terminal 7 for transfer to the first memory 4. It is also conceivable that the register terminal 6 and the first information-transferring terminal 7 are arranged as one single cooperating unit (not shown). The transaction ID and a receipt number unique to the receipt can be the same number and are in that case generated by the cash register. If this is not the case, the receipt number can be transferred to the first memory 4 (the card memory) separately as stated above, so that a connection can be obtained between a specific purchase and a specific shop receipt. It should be pointed out here that it is not a requirement in all countries to give a receipt number as a connection to the purchase transaction. In some countries the receipt does not even have to be retained.

An example of purchase data for the purchase in the example, which has been entered into the card memory from the first information-transferring terminal is shown below. The transaction ID and the receipt number are the same number here, i.e. 00123456.

00123456 3 diamonds 100 000 SEK 1 watch 50 000 SEK 20 000 SEK 2003-07-17

A digital first signature based on the data in the above information that must be protected from tampering is then created. Information which identifies the customer is also suitably included.

Examples of information which can be included are:

Date, the shop's identification for the service company, the operator's identity for the shop, transaction reference, tourist's passport number, code for passport-issuing country, description, number and price for each item.

This information is then encrypted with the shop's private key and the encryption is stored on the card.

If there is a separate receipt number, this should also be included in the information that is encrypted in order to form the first digital signature. The purchase is signed in a way that is unique to the shop and the transaction in question by selected information being encrypted with a first private key, which first key can be unique to the shop 5 or unique to the shop assistant in question. An encryption which constitutes the first signature is thus obtained, which encryption is stored in the first memory 4 on the card, bound to the purchase in question.

The well-known algorithm RSA can be used for the encryption. The keys with which the encryption is created are asymmetrical in a previously known way, such as the commonly occurring "PGP" (Pretty Good Privacy). This generally means in a first case that the encryption of plain text to a first encryption takes place with the aid of a first key, which can be private and confidential. This first key cannot be used for decryption of the first encryption to plain text. A second key, which can be common and known, can however be used to decrypt the first encryption to plain text. In a corresponding manner, plain text can, in a second case, be encrypted to a second encryption with the aid of the second key and the second key cannot then be used to again decrypt the second encryption to plain text. The first key can here be used to decrypt the second encryption to plain text.

Thus, both the amount and the passport number can be verified from the first signature by using a second key belonging to the system to decrypt the first signature. What is verified is, for example, that the amount and passport number have not been changed. Furthermore, it is known which key carried out the encryption, i.e. who has signed. In this way, there is a reduced possibility to, with fraudulent intent, create access to the area of memory in question on the card, find a purchase and change the amount and/or passport number. This also applies to the transaction ID and any receipt number.

The tourist can now visit several shops, where the card does not have to be initiated, only purchase data for each respective subsequent purchase being added to the card, i.e. transaction ID receipt number, if any purchased items amount date

and also generated data in the form of a digital signature.

For each purchase, the tourist receives the receipts connected with the purchase. In certain countries the tourist is required to be able to produce valid receipts.

The sequences which take place in connection with possible customs approval of each purchase based on the purchase example above are described below.

The tourist's card is read in the second information-transferring terminal 9, which is located at a customs inspection point 8. The second information- transferring terminal 9 comprises, like the first information-transferring terminal 7, a second interface 18, a second microprocessor 19 with software which is developed to communicate with the card 1 and to handle the integral parts of the card 1 which are included in the system for refunding value- added tax. There is also a second terminal 19'. The device at the customs inspection point does not, of course, have to be a terminal but can, for example, be constituted by a personal computer (PC).

Purchase data and tourist data are collected from the card 1 and the accuracy of all details, such as tourist data and goods is checked. The check is carried out by decrypting the first digital signature with a second key, which is known to the second terminal. The customs inspection system must have a database containing requisite keys, which database can be a part of the second terminal 19'. After decryption, the shop's signature is obtained as plain text and can be compared with other stored information in order to check the authenticity of this and of the signature. This is carried out for each registered purchase. A comparison is made between purchase data registered on the card, any receipts with receipt numbers (identical with the transaction ID in the example) and purchased goods.

The passport is checked.

Each purchase that is approved is marked as approved by a second digital signature being entered on the card at the customs inspection point 8 for each approved purchase. Alternatively, several or all purchases can be first approved and then signed. If we take the purchase described in the example, this second signature can be carried out by creating an encryption at the customs inspection point 8. This signing is carried out in the following way:

A new signature, the second digital signature, is created, which can comprise the shop's signature (encryption) and suitable customs data. For example:

Export date and time

Identification for customs inspection point

Identification for customs inspector

Any goods which have been removed from the original cheque and the sales tax for which cannot therefore lead to a refund.

The second digital signature is created with a third key, which is constituted by the customs inspector's or the customs station's private key. In this way, we can establish: that what was approved was signed by the shop/shop assistant if anything has been removed when the approval was made where or by whom the approval was made. The tourist can then go to a refund office 10, which preferably is located at an airport or in connection with a customs inspection point 8. Here, the card 1 is read again, this time in a third information-transferring terminal 11. The third information-transferring terminal 11 comprises, like the first and second information-transferring terminals 7, 9, a third interface 22, a third microprocessor 23 with software which is developed to communicate with the card 1 and to handle the integral parts of the card 1 which belong to the system for refunding value-added tax. There is also a third terminal memory 23'.

There, the following takes place for each purchase:

The customs signature, i.e. the second digital signature, is decrypted with the aid of a fourth key in order to check the authenticity of the customs signature, i.e. the second digital signature, in the same way as the authenticity of the shop's signature, i.e. the first digital signature, was checked at the customs inspection point 8. Preferably, the authenticity of the shop's or the shop assistant's signature is also checked.

The transaction ID for each purchase is registered as refunded. (This prevents one or several duplicated cards from being used for fraudulent purposes in order to receive the refund for the same purchase several times.)

The amount to be refunded is paid out in the method desired by the customer. As described above, this method can be chosen in advance by the tourist data.

Many methods of refunding value-added tax are known in the trade. These include payment into a bank account and deposit into a credit card account. These methods of repayment are not described in any further detail here. Furthermore, there are several variations of how the initiation of the tourist's card 1 can take place. The initiation can be carried out by the card-issuer when the card is issued, or the initiation can be carried out by a refund office on the outward journey, or at a hotel. It can be suitable to initiate the card at a hotel as the data which is included as tourist data is the data which a guest is usually asked to supply before a stay at a hotel. Tourist data can thus be used in future not only for refunding value-added tax but also when checking into hotels.

The system in accordance with the invention gives a high degree of security.

- The purchase transaction is signed in the shop

The signature is used at customs inspection points to ensure that the sender really is the shop operator stated and that no-one has changed the transaction data.

The customs signature, a second digital signature, is added at the customs inspection point.

If the refund takes place at a special refund point, all signatures and transaction data are checked.

This check can be carried out manually. Alternatively, the system can comprise a program for automatically checking said signatures and whether or not the transaction data has been tampered with.

The invention is not limited to the embodiments described above but can be varied freely within the framework of the following patent claims.

In another embodiment the encryption can be done by a hash, which in turn is based on plain text of the purchase information. On verification of such a signature a new hash is created which is compared with the hash stored on the card. There are several variations of how the customs inspection point's 8 approval of each purchase for refunding of value-added tax can be carried out. One variation is that when the tourist's card 1 is inserted in the customs inspection point's second information-transferring terminal 9, all data for each purchase is printed out on paper, i.e. a physical paper document, or refund form, is printed out corresponding to an electronically stored refund form with all registered data, such as purchase information and personal details. If all the data is correct for each purchase, a physical stamp is added. This stamped document is then taken to a refund office 10, where the transaction data is checked and a refund is paid out in the desired manner.

The refund method can also be automated, so that the tourist, after passing through the customs inspection point, merely looks for an automatic device comprising the third information-transferring terminal 11. The sum to be refunded can then be paid out in accordance with the repayment method desired by the customer, if this has been previously selected in the tourist data as described above.

Alternatively, if the customs inspection point is in contact with the service company's central database, the repayment can be carried out by means of a bank cheque or by credit card in accordance with the tourist's expressed preference. However, in order for this to work, relevant tourist data must be registered on the card. If this function exists, the tourist does not need to contact a refund office or look for an automatic refund station.

Claims

1. System for handling of refunding of sales tax, such as value- added tax to a consumer who has purchased goods in another tax area than the area where he is resident, which system comprises a smart card (1) belonging to each respective consumer, with at least a first memory (4) for storing information, and first terminals (7), which are placed in shops (5) connected to the system and equipped for communication with smart cards (1) and also have means for input of information to the first memory (4) c h a r a c t e r i z e d i n that the smart cards (1) contain information about the holder's area of residence, that said first terminals (7) have a terminal memory (14') with information regarding current rules for refunding sales tax, that said first terminals (7) contain software for comparing said information about the holder's area of residence with said current rules in order to establish whether the purchase in question meets the rules for the entitlement to refund of sales tax, that, in the case of purchases which meet said rules, the first terminal (7) is arranged to be directed by said software to transfer purchase details comprising type of goods and price to the first memory (4), that said software is arranged to produce a reference unique to the current purchase and to create a first digital signature unique to the current purchase based on at least unique purchase information and to add this reference and first digital signature to the purchase information in the first memory (4), that second terminals (9) located in border areas, such as at customs inspection points (8), are provided with software to direct communication with said smart cards (1 ) for automatic checking of the authenticity of the first digital signature, that said second terminals (9) have or are connected to means for presentation of information stored in the first memory, whereafter a customs inspector in said border area can check purchased and presented goods against purchase information stored in the first memory (4), and that the second terminals have software for generating and adding a customs stamp in the form of a digital second signature to said presentation if the customs clearance is approved and whereafter the consumer can receive a refund of sales tax for approved purchases.

2. System in accordance with claim 1 , cha racte rized i n that said first terminals (7) are also arranged to compare said purchase information with said current rules in order to establish whether the current purchase meets the rules for entitlement of refund of sales tax.

3. System in accordance with claim 1 or 2, c h a ra cte ri zed i n that the second terminals (9) have means for entering a customs stamp in the form of a second digital signature in the first memory (4) in connection with customs-checked and approved purchase information.

4. System in accordance with claim 3, c h a ra cte ri zed i n that the system comprises third terminals (11 ) located at refund points, which terminals are arranged to communicate with the smart cards (1) and thus verify said second digital signature.

5. System in accordance with claim 4, characterized in that said third terminals (11) are also arranged to verify the first digital signature.

6. System in accordance with claim 4 or 5, c h a ra cte ri ze d i n that the third terminals (11) are provided with software for automatically recording refunds of sales tax connected to said unique reference for a purchase.

7. System in accordance with any one of the preceding claims, c h a ra cte ri ze d i n that the second terminals (9) are arranged to present the purchase information in the first memory (4) on a monitor together with the first digital signature in plain text, enabling a customs inspector to check the information on the monitor against purchased and presented goods and to manually check that the plain text of the first digital signature corresponds to unique purchase information for the purchase in question.

8. System in accordance with any one of the preceding claims, ch a ra cte ri zed i n that the second terminals (9) are arranged to present purchase information with an approved first digital signature in the first memory (4) on a monitor, enabling a customs inspector to check the information on the monitor against purchased and presented goods, and that the second terminals (9) are arranged, in the case of an error in the first signature, to give an error indication, for example in the form of an indication on the monitor and/or in the form of a sound-signal.

9. System in accordance with any one of the preceding claims, c h a ra cte ri ze d i n that the second terminals (9) have means for adding a customs stamp in the form of a second digital signature.

10. System in accordance with any one of the preceding claims, c h a r a c t e r i z e d i n that the second terminals (9) have, or are connected to, a printer and have software for printing out refund forms containing purchase information and said first digital signature in plain text, enabling a customs inspector to check the information on the refund form against purchased and presented goods and also to manually check that the plain text of the signature corresponds to purchase information unique to the purchase in question and wherein approved refund forms are provided with customs stamps.

11. System in accordance with any one of the preceding claims, c h a ra c t e r i z e d i n that the second terminals (9) have, or are connected to, a printer and have software for printing out refund forms containing purchase information, enabling a customs inspector to check the information on the refund form against purchased and presented goods, and in that the second terminals (9) are arranged, in the case of an error in the first digital signature, to either give an error indication on the refund form or give an error indication on the monitor or in another way, wherein approved refund forms are provided with a customs stamp.

12. System in accordance with any one of the preceding claims, characterized in that information about the country of residence of the card holder is stored in the first memory (4).

13. System in accordance with any one of the preceding claims, characterized in that the card holder's name, passport number and passport-issuing country are stored in the first memory (4) on each respective smart card (1).

14. System in accordance with any one of the preceding claims, characterized in that the card holder's home address and preferred form of repayment, such as desired currency, bank account or card number signaturs klartext innehaller for det aktuella kόpet unik kόpinformation, att denna signatur inmatas i det fδrsta minnet (4) i anslutning till kδpinformationen i det fόrsta minnet, att tullkontrollplatser fόrses med andra terminaler (9), som ar utformade for att kunna kommunicera med namnda smarta kort (1) och aterge en presentation av den i det fόrsta minnet (4) lagrade kόpinformationen, att inkόpta varor visas av konsumenten pa tullkontrollplatsen (8) och att konsumentens smarta kort (1 ) avlases i den andra terminalen (9) for kontroll av varor mot i det fόrsta minnet (4) lagrad kόpinformation, varjamte den fόrsta digitala signaturens riktighet kontrolleras for att sakerstalla att kόpinformation ej manipulerats, och att, om namnda kontroller visar att varorna stammer med lagrad kόpinformation samt den fόrsta digitala signaturen verifierar kόpinformationen, aterbaring av varuskatt godkannes av tullkontrollant.

23. Fόrfarande enligt kravet 22, k a n n e t e c k n a t a v , att for varje kόp aven inmatad kόpinformation jamfόres med namnda aktuella regler for att faststalla om det aktuella kϋpet uppfyller reglema for ratt till aterbaring av varuskatt.

24. Fόrfarande enligt kravet 22 eller 23. k a n n e t e c k n a t a v , att mjukvara i den andra terminalen (9) anvandes for automatisk kontroll av den fόrsta digitala signaturens riktighet.

25. Fόrfarande enligt kravet 22 eller 23, k a n n e t e c k n a t a v , att den fόrsta digitala signaturen anges i klartext pa namnda presentation och dar jamfόres med kόpinformation for verifikation av denna och signaturens riktighet.

26. Fόrfarande enligt nagot av kraven 24 eller 25, k a n n e t e c k n a t a v , att godkannandet av kόpinformation, den fόrsta digitala signaturen och uppvisade varor verifieras av en tullstampel i form av en andra digital

r»τ-Λτ.r"itr'Pϊ r») ιτ~r /r*ι si r*

said signature being encrypted with a first encryption key and only readable with a second key, for example in said second terminals (9).

21. System in accordance with claim 20, c h a r a c t e r i z e d i n that a program comprised in the second terminal (9) is arranged for asymmetrical encryption for forming the second digital signature, said signature being encrypted with a third encryption key and only readable with a fourth key, for example in said third terminals (11 ).

22. Method for handling of refunding of sales tax, such as value- added tax, to a consumer who has purchased goods in a tax region other than his region of residence, c h a r a c t e r i z e d i n that first terminals (7), located in shops (5) and stores and designed for communication with smart cards (1 ), are used for storage in a first terminal memory (14') of current rules for refunding sales tax, that purchase information is entered in said first terminals (7), the purchase information containing in the usual manner information regarding sales tax, that a smart card (1) containing a first memory (4) is provided with information about the cardholder's country of residence, that for each purchase said information about the cardholder's country of residence is compared with said current rules in order to establish if the purchase in question meets the rules for entitlement to refund of sales tax, that in the case of purchases which meet said rules, purchase information comprising type of goods, price, sales tax and a reference unique to the purchase in question are stored in the first memory (4) on the consumer's smart card (1), that a first digital signature is created in said first terminals (7), the plain text of which signature contains unique information for the purchase in question, that this signature is fed into the first memory (4) in connection with the purchase information in the first memory, that customs inspection points are provided with second terminals (9), which are designed to be able to communicate with said smart cards (1) and reproduce a presentation of the purchase information stored in the first memory (4), that purchased goods are presented by the consumer at the customs inspection point (8) and that the consumer's smart card (1) is read in the second terminal (9) in order to check goods against the purchase information stored in the first memory (4), in addition to which the authenticity of the first digital signature is checked in order to ensure that the purchase information has not been tampered with, and that, if said checks show that the goods correspond with the stored purchase information and the first digital signature verifies the purchase information, a refund of sales tax is approved by the customs inspector.

23. Method in accordance with claim 22, c h a r a c t e r i z e d i n that for each purchase, entered purchase information is also compared with said current rules in order to establish if the purchase in question meets the rules for entitlement to refund of sales tax.

24. Method in accordance with claim 22 or 23, characterized in that software in the second terminal (9) is used to automatically check the authenticity of the first digital signature.

25. Method in accordance with claim 22 or 23, characterized in that the first digital signature is presented in plain text on said presentation and is there compared with purchase information in order to verify said information and the authenticity of the signature.

26. Method in accordance with any of claim 24 or 25, characterized in that the approval of the purchase information, the first digital signature and the presented goods is verified by a customs stamp

ncrmπFn QHΓCT /BMI P QI\ in the form of a second digital signature, which is created in the second terminal (9) and stored in the first memory (4) in connection with the purchase information for the purchase in question.

27. Method in accordance with any of claims 22-26, characterized in that an identification of the shop/store (5) is stored on the smart cards (1) in connection with purchase information registered for a purchase.

28. Method in accordance with any of claims 22-27, characterized in that refund of sales tax is paid out at refund points (10) via third terminals (11), which are arranged to communicate with said smart cards (1).

29. Method in accordance with claim 28, characte rized in that information about transactions made in third terminals (11) is sent to each respective store/shop (5) where purchases corresponding to said transactions have been registered, whereafter each respective store/shop can claim a refund of sales tax from the tax authority.

30. Use of smart cards (1) for handling of refunding of sales tax, such as value-added tax, to a consumer who has purchased goods in a tax region other than his region of residence, characterized in that each of said smart cards (1 ) is equipped with a semi-conductor part (2) comprising a microprocessor (3) with a first memory (4), that said smart cards (1) bear tourist details comprising at least country of residence and possibly also area of residence for the cardholder, that first terminals (7) in shops/stores (5) are arranged to communicate with the smart cards (1) and for this purpose comprise means for input of information to the first memory (4) on each smart card (1), that purchase information for purchases registered in said first terminals (7) and there found to meet the rules for refund of sales tax is stored in the first memory (4), that said smart cards (1) also bear a first digital signature confirming each respective purchase, which signature is entered via software in the first terminal (7) and the plain text of which contains purchase information unique to each purchase, and in that second terminals (9) at customs inspection points (8) are arranged to communicate with said smart cards (1) in order to check the authenticity of the first digital signature.

31. Use in accordance with claim 30, characterized in that after approval by customs, the first memory (4) is provided with a customs stamp in the form of a second digital signature via software in said second terminals (9).

32. Use in accordance with claim 31 , characterized in that in order to check purchase information and the second digital signature and possibly also the first signature, the smart cards (1) are arranged to communicate with third terminals (11), which are located at refund points in connection with customs inspections points (8), for example at airports.