Shanghai has sought to bring further convenience to international visitors by opening up new centralized service counters for instant tax refunds in two of the city's most popular commercial areas, helping foreign tourists easily handle the process.
First piloted in Shanghai in 2019, the instant tax refund service allows eligible foreign tourists to receive tax refunds immediately after purchases rather than waiting until departure at the airport, enabling them to spend the returned cash during their trip.
The measure was expanded nationwide in April, with Shanghai adding over 60 stores that offer refund-upon-purchase services to international tourists.
The addition of the two main counters in the city's bustling Xintiandi and Huaihai Road shopping districts will make the process easier for consumers who are keen to splash the cash, while increasing the total number of such facilities across Shanghai to 11.
The service has been welcomed by tourists from overseas, while businesses in the area also benefit from the policy by encouraging additional consumption.
"This is a little money, but it makes me happy. I can use the money for the gift shop, or snacks, coffee," said a tourist from Thailand.
"The policy allows foreign tourists in Huaihai Road to enjoy a high efficiency and convenient 'instant refund after purchase, cash in hand' service, stimulating secondary consumption," said Cao Ying, head of the Huaihai Road refund counter.
In a further change to the policy, since the end of April, the minimum spending threshold was lowered from 500 yuan (about 69 U.S. dollars) to 200 yuan (about 28 U.S. dollars), bringing more benefits.
"[After] I bought maybe 200 (yuan's worth), I want to get more things. Maybe it will be like 500-600 (yuan) (about 69 U.S. dollars) to get the tax-free. So maybe this is the trick," said an Iraqi tourist.
The manager of a leading fashion store on Nanjing Road, one of the busiest tourist destinations in the city, reported increased sales and a growing number of refund claims following the adjustment, with tourists coming in from far and wide.
"We did not have so many refund claims in the past, only several each day. But now, we receive dozens of claims every day, from customers from Russia, Southeast Asia, and European countries. It's a broad range of customers," said Li Yuan, manager of a Zara store in the area.
Statistics from the local government also reveal the positive impact of the retail trend.
"Since the new policy took effect, Huangpu District has seen a 350 percent increase in refund applications, with purchases under 500 yuan (about 69 U.S. dollars) accounting for over 12 percent of transactions, bringing up more smaller-amount consumptions," said Liang Jialei, the chief accountant from Shanghai's Huangpu District tax authority.
The streamlined refund process has enhanced the shopping experience for international visitors while stimulating retail growth. In the month since the threshold reduction, Shanghai's tax-refund sales surged 85.3 percent year-on-year according to data, with refund amounts up nearly 78 percent.
Shanghai opens new 'tax refund-upon-purchase' counters for foreign visitors
Shanghai opens new 'tax refund-upon-purchase' counters for foreign visitors
