Tax refunds to tourists surge in Shanghai

Shanghai has seen a remarkable surge in tax refund sales for departing tourists during the first half of this year, underscoring the city's growing appeal as a global shopping destination, according to data released by the Shanghai Municipal Tax Service, State Taxation Administration on July 4.

Sales from tax refunds upon departure rose approximately 85 percent compared to the same period last year, while the refund-upon-purchase program saw an impressive 28-fold increase.

The city processed tax refunds for over 63,000 tourists from 167 countries and regions, issuing nearly 90,000 application forms.

Shanghai was among the first cities in China to implement the departure tax refund policy for overseas visitors in July 2015.

Since then, Shanghai has continuously innovated to enhance the program. In 2019, Shanghai pioneered the refund-upon-purchase service, allowing tourists to receive their tax refunds in cash immediately at the point of sale.

In 2020, a service point opened on West Nanjing Road to ease cash management for nearby tax refund stores.

The city also piloted the first self-service application machine at the New World Daimaru Department Store in April 2025, while the Bund saw the opening of the city's first city-wide refund service point at the end of June, allowing qualifying tourists to obtain cash refunds for purchases made at any registered tax refund store across Shanghai.

By July 1, Shanghai boasted 17 tax refund points, covering key commercial districts such as Nanjing Road, Lujiazui, and Xujiahui.

More than 1,400 registered tax refund stores, including time-honored brands and international high-end brands, have joined the network.

The Shanghai tax authorities, in collaboration with the municipal commerce department, are planning to expedite the upgrade of more refund points to support city-wide refunds.

These enhancements, including the rollout of additional self-service kiosks in high-volume tax refund stores, underscore Shanghai's commitment to providing a seamless and efficient shopping experience for international visitors.