Foreigners hail Shanghai's instant tax refund service

The instant departure tax refund service introduced by Shanghai on a trial basis has won applause from the overseas tourists, according to People's Daily.

The city took the new efforts to improve its departure tax refund service, the policy rolled out a month ago. It allows international and interregional travellers who shop at the pilot stores in the eastern Chinese megacity to be rebated the value-added tax they are entitled to for products they buy.

The procedure has been simplified and made convenient. The eligible shoppers will be paid in the Chinese currency.

However, those who get a tax refund under the plan will still have to check their eligible goods at customs and then submit the required documents to the agent in the quarantine area of the departure port to fill in the necessary paperwork.

"Tax can be refunded by stores in cash when shopping in Shanghai," said Japanese shopper Yanagi Soichiro. "The service is so nice," said Soichiro, who is the first beneficiary of the pilot service.

The city's first three pilot stores have issued 12 instant tax refund applications to visitors from Japan, Australia and other places in the first month, involving 71,000-yuan ($10,587.39) worth of goods and refunding around 6,500 yuan to them.

Since introducing the departure tax refund service in 2015, Shanghai has topped the country for three consecutive years in terms of both the tax rebates and the sales volume of relevant goods where the refund was applied.

China began its departure tax refund service in southern Hainan province in 2011 on a trial basis, and extended the policy to nationwide in 2015. A total of 26 provinces, autonomous regions and cities have echoed the policy so far.

Based on the policy, foreign visitors who shop at designated shops will be able to apply for a refund equivalent to 11 percent of the amount spent.

It is more convenient to get instant tax refund in stores than dealing with the rebate at the airport, Australian tourist Jennifer L. said after getting the cash payback, adding that the service not only facilitates travelers, but also keeps abreast with the global trend.