OVER 400 stores in Shenzhen now offer departure tax refund services following the introduction of the policy at the city’s airport in 2016, according to the local commerce bureau.

Well-known Shenzhen products, such as electronic consumer goods and home furnishings, are gaining popularity among overseas tourists at these stores.

Tourists shopping at Shenzhen’s departure tax refund stores can claim refunds on purchases from 500 yuan (US$68) to 110,000 yuan. For goods with a 13% value-added tax, the tax refund rate is 11%, minus a 2% agency fee, resulting in an actual refund of 9%.

International travelers and those from China’s Hong Kong, Macao, and Taiwan who stay on the Chinese mainland for no more than 183 consecutive days are eligible for a tax refund. They can receive value-added tax refunds immediately in renminbi cash after producing sales invoices and filling out an application form. Compared to the traditional way of processing refunds at the departure port, this service enables refunds to be used for additional purchases.

In the first 11 months of last year, sales of goods eligible for departure tax refunds in Shenzhen reached 320 million yuan, with refunds totaling 28.75 million yuan, an increase of 11.8 times compared to the same period in 2023.

(SD News)