Tax-Free Benefit for Veterans Boosts Military Sales for Brands on the Exchange

Tax-Free Benefit for Veterans Boosts Military Sales for Brands on the Exchange

Since 1895, the Army & Air Force Exchange Service (Exchange) has provided the comforts of home to active duty U.S. Soldiers, Airmen and their families who are stationed around the world through military sales. For the last two years, U.S. Veterans have also enjoyed the benefit of continuing to shop the Exchange’s online store,

Tax-Free Benefit Maximizes Military Sales

U.S. Veterans have saved millions in sales tax since the lifelong, tax-free shopping benefit at launched in 2017. Earlier this year, the Army & Air Force Exchange Service announced a change in Department of Defense policy that extends the tax-free benefit to all honorably discharged veterans. (Read more here.)

Similar to how “tax free” weekends work in some states, prompting consumers to head to the stores to purchase certain items (school supplies, clothing, etc.), the DoD’s lifelong tax-free benefit entices Veterans to shop military exchanges online, boosting online sales for the products and brands available in U.S. military exchanges around the globe.

The tax-free benefit is a way of saying “thanks” to Veterans for their service, and allows Vets to enjoy the same good deals and savings as active duty military members. For brands, the benefit boosts veteran marketing and military sales.

Tax-Free Benefit by the Numbers

military sales statistics
  • Since the military sales benefit was first made available to U.S. Veterans in 2017, more than 90,000 Vets have used the shopping privileges at 
  • Veterans have saved $5.8 million in sales tax (and counting) since the benefit launched
  • So far in 2019, Veterans account for 12 percent of the Exchange’s online shopping base.

How the Tax-Free Benefit Can Boost Your Brand

When you make your products available in the Exchange, your brand will experience worldwide exposure, allowing you to reach consumers around the globe, not just in the U.S. The new tax-free benefit for Veterans, including those honorably discharged, further extends your brand exposure and veteran marketing strategy to the millions of living military veterans. According to the U.S. Census Bureau, there were 18.2 million military veterans living in the U.S. in 2017.

Specialized Marketing International (SMI) represents leading and emerging brands who desire to reach military consumers and veterans. We can help get your products on the exchange, and are focused on maximizing your military sales and market share in the Exchange marketplace. Contact us today.

Contact SMI Today!