China's instant tax refund policy for foreign tourists, which shifts from a refund-upon-departure model to a refund-upon-purchase model, has boosted travel flows as well as inbound consumption.
Under the new refund-upon-purchase policy, foreign visitors can instantly claim value-added tax (VAT) rebates at tax-free stores, enabling them to reuse the refunded amount in real time for further shopping. Previously, VAT rebates were only available for withdrawal upon departure.
In the first quarter of this year, the number of foreign tourists visiting the ancient town of Nanxun in Huzhou City, east China's Zhejiang Province, saw a year-on-year increase of 302 percent.
In a tax refund store in the ancient town, many foreign tourists are browsing and selecting their favorite products. One foreign visitor, who had just purchased some cultural and creative products as well as calligraphy items, was eligible for a tax refund of 53.5 yuan (about 7.33 U.S. dollars) based on his total purchase. This amount could be used to buy even more products.
"The shopping experience here is fantastic; I'll definitely come back next time," said a tourist from Egypt.
"To cater to the personalized needs of foreign tourists, we offer specialized services such as one-on-one foreign language guides, full-process tax refund assistance, and enhanced shopping experiences for visitors," said Sun Hui, director of a duty-free shop in Nanxun ancient town.
Recently, the Shenzhen Municipal Bureau of Commerce and the Shenzhen Municipal Taxation Bureau in south China's Guangdong Province jointly released the list of the ninth batch of departure tax refund stores in Shenzhen, covering categories such as electronics, fashion, and home products.
With this addition, the number of departure tax refund stores in Shenzhen has exceeded 400, further expanding the city's departure tax refund service network.
"In the first quarter of this year, the tax refund amount has already reached 1.6 million yuan, which has greatly contributed to increasing our sales revenue," said Huang Canhui, director of a store.
The volume of departure tax refunds in Shenzhen has also shown significant growth. According to statistics, in the first quarter of this year, Shenzhen Customs processed departure tax refunds totaling 16.437 million yuan (about 2.25 million U.S. dollars), a year-on-year increase of 1.58 times.
"Refundable items must be in unused or unconsumed condition. Once the customs verification is complete, tourists can proceed to the adjacent bank window to handle the subsequent refund procedures," said Wang Jian, a custom officer at Man Kam To Control Point in Shenzhen.
Instant tax refund policy boosts inbound consumer consumption
