Overseas visitors saving cash with instant tax refund service


Overseas visitors to China are spending more and claiming more refunds thanks to the expansion of the instant tax refund service, which has contributed to a surge in sales and refunds since its nationwide rollout in April.
In the first half of this year, the number of overseas travelers using tax refund services rose 186 percent compared to the same period a year earlier, while sales of tax refund goods climbed 94.6 percent and refund amounts grew 93.2 percent, according to the State Taxation Administration. More than 7,200 outlets across the country participate in the program.
The instant refund was piloted in Beijing, Shanghai, Shenzhen in Guangdong province and other cities before being rolled out nationwide, and allows visitors to receive rebates of as much as 11 percent directly at the point of purchase instead of waiting until departure.
The April upgrade also lowered the minimum purchase threshold from 500 yuan ($70) to 200 yuan and doubled the maximum cash refund limit to 20,000 yuan, while expanding payment options to include Alipay, WeChat Pay and bank cards.
Retailers say the system is driving secondary consumption and improving the shopping experience. Shenzhen MixC, one of the first shopping malls in Shenzhen to introduce the instant tax refund service, has 157 stores participating in the program.
Liang Jingyi, head of Shenzhen MixC's tax refund service, said the mall has established a centralized tax refund counter for overseas consumers who have shopped at different stores, with multiple refund methods available.
A mobile phone mini-program has been put into use since June to facilitate the tax refund process, Liang added.
As a pilot for the "one package, one form" program, the shopping mall offers a special packaging service, where each product is paired with a tax refund application form in a sealed bag, she said, adding that this method enables customs authorities to verify documentation more efficiently, reducing clearance time from around 30 minutes to just five minutes.
"Overseas consumers have expressed their appreciation for our instant tax refund service, citing its convenience," Liang said. "They noted that it offers a good shopping experience and provides tangible discounts, allowing them to use the refund for secondary consumption, such as dining.
"In the future, we will continue to expand the range of brands included in the instant tax refund program, aiming to incorporate all eligible brands," she said.
Since its launch, the instant tax refund service has seen continuous upgrades. For example, the Beijing Municipal Tax Service has introduced a series of measures this year to enhance convenience in using the service.
The measures include launching one-stop service centers for citywide tax refunds, enabling Alipay's "tap" function for immediate tax refund transfer, increasing the service limit to 220,000 yuan and extending the eligibility period for tax refunds from 17 days to 28 days. Efforts have also been made to facilitate mutual recognition and processing of instant tax refunds between Beijing and Tianjin.
Since June, more than 350 tax refund stores have been opened in Beijing, bringing the total to over 1,500.
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