Beijing has launched the first batch of centralized tax refund points, offering a pilot "Buy Now, Refund Now" service for efficient departure tax refunds for overseas travelers.
In a fresh move to boost inbound spending, China unveiled a new set of measures on April 27 to further optimize its departure tax refund policy to improve the shopping experience of overseas travelers.
The minimum purchase threshold for departure tax refunds has been lowered, allowing overseas travelers to apply for a refund if they spend at least 200 yuan (about 27 U.S. dollars) at the same store on the same day and meet other relevant requirements, according to a circular jointly issued by the Ministry of Commerce and five other government departments.
So far, Beijing has a total of three centralized tax refund points providing "Buy Now, Refund Now" service, along with 16 large comprehensive shopping malls offering the instant refund service.
The upper limit for instant departure tax refunds has been raised from the previous 50,000 yuan (about 6,925.3 U.S. dollars) to 220,000 yuan (about 30,471.34 U.S. dollars), which means that foreign tourists can instantly receive tax refunds on purchases of up to 220,000 yuan after completing a credit card pre-authorization.
Overseas tourists can claim tax refunds on site at a centralized refund point with a tax refund application form issued by any departure tax refund store in Beijing.
"The fact that it's here the shopping mall and all you do is go downstairs and it's very fast and easy, and I don't have to wait in the long line at the airport, which was really nice," said Jordan, American tourist.
Driven by the new policy of departure tax refund, sales at some shops have also seen growth in recent times.
"In May, sales increased by about 20 percent compared to April. Over 90 percent of foreigners usually claim a tax refund," said Gao Deyao, deputy manager of DJI Flagship Store at Beijing China World Mall.
"We currently have over 100 brands in our shopping mall that offer tax-free shopping. Next, we will centrally declare the stores that meet the tax-free requirements and assist them in communicating with the tax authorities," said Cui Peng, operation manager of Beijing China World Mall.
China started to implement the departure tax refund policy for overseas travelers in 2015. Since its implementation, the scale of departure tax refunds has grown year by year, benefiting an increasing number of overseas travelers.
Beijing launches first batch of centralized tax refund points for overseas tourists
