Shanghai has upgraded its instant tax refund service with digital refund option, bringing further convenience to international visitors.
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 this year.
The centralized tax refund point at Shanghai Hang Lung Plaza, one of the busiest shopping malls in the city, has transitioned from cash refunds to digital service, which is expected to expand to additional tax refund points in the future. This enhancement will greatly benefit many foreign tourists who are accustomed to mobile payments.
Previously, the service only allowed for cash refunds, requiring merchants or centralized refund points to pay upfront. The rising popularity of inbound tourism and the growth of international consumption have placed financial pressure on the businesses.
"Especially during holidays, they [the merchants] need to reserve a large amount of cash on hand. The digital channel can reduce their reliance on cash and enable more efficient cash management,” said Janice Cheung Lam-na, director of Hang Lung Properties.
With the introduction of new measures in late April, the filing process was transferred from the provincial tax bureau to the competent tax authority, enabling the rapid expansion of eligible tax refund stores.
"We are speeding up the filing process and can basically complete it within two working days. Since the implementation of the new measures, more than 100 tax refund shops have been added in Jing'an District, mainly in the Nanjing Road W. business area," said Liang Ye, a staff member from the tax bureau in Jing'an District.
Shanghai now hosts over 1,200 tax-refund shops citywide, covering all 16 districts. According to the latest figures, as of June 15, sales under the tax-refund scheme surged 95.8 percent year on year, with refund amounts jumping more than 81 percent over the same period in 2024, ranking first nationwide.
Shanghai upgrades instant tax refund service for overseas travelers with digital refund option
