Shanghai’s instant departure tax refund service lauded by overseas shoppers

A foreign visitor deals with the procedures of departure tax refund business during the first China International Import Expo (CIIE) held in November 2018. The departure tax refund business of the eastern city soared thanks to the expo. (Photo: Shanghai Municipal Tax Service of the State Administration of Taxation)

The instant departure tax refund service introduced by Shanghai on a trial basis has won applause from the overseas tourists. “Tax can be refunded by stores in cash when shopping in Shanghai. The service is so nice,” lauded Japanese shopper Yanagi Soichiro, who is also the first beneficiary of the pilot service.

As a new effort, the city made to improve its departure tax refund service, the policy rolled out a month ago allows international and interregional travelers who shop in the eastern Chinese megacity be rebated at the pilot stores with the value-added tax they are entitled to for products they buy. Those eligible will be paid in the Chinese currency. Those who get a tax refund under the plan still need to have their eligible goods checked at customs and then submit the required documents to the agent in the quarantine area of the departure port to fill in the necessary paperwork, while the procedure is simplified and convenient.

The city’s first three pilot stores have issued 12 instant tax refund applications to visitors from Japan, Australia and other places in the first month, involving 71,000-yuan ($10,587.39) worth of goods and refunding around 6,500 yuan to them. Since introducing the departure tax refund service in 2015, Shanghai has topped the country for three years in a row in terms of both the tax rebates and the sales volume of relevant goods where the refund was applied. It is more convenient to get an instant tax refund in stores than dealing with the rebate at the airport, Australian tourist Jennifer L. said after getting the cash payback, adding that the service not only facilitates travelers but also keeps abreast with the global trend.

China began its departure tax refund service in southern Hainan province in 2011 on a trial basis and extended the policy to nationwide in 2015. A total of 26 provinces, autonomous regions and cities have echoed the policy so far. Based on the policy, foreign visitors who shop at designated shops will be able to apply for a refund equivalent to 11 percent of the amount spent.

By Xie Weiqun & Du Yifei

(People’s Daily)