Chongqing- The Chongqing Municipal Taxation Bureau introduced the "Buy and Refund" program on January 3, making Chongqing a pilot city where foreign shoppers can instantly receive tax refunds at select stores immediately after purchase.
Boutique stores in the Starlight 68 Plaza. (Photo/ Starlight 68 Plaza)
What does "Buy and Refund" mean? Simply put, foreign visitors can shop at designated tax refund stores, and after buying items eligible for a tax refund and completing the usual paperwork, they can immediately claim a cash refund equal to the VAT (value-added tax) on their purchases.
The new system simplifies tax refunds for travelers. Instead of claiming refunds at airports or ports, they now receive them directly in stores, promoting increased spending.
Lan Tingyi, director of Export Tax Refund Service and Administration Bureau of Chongqing Municipal Taxation Bureau, said that the process includes a pre-authorization on the customer's credit card, released upon departure from the country.
Travelers can now claim a tax refund of up to 30,000 yuan (approximately USD 4224) per day from the same store. They simply need to present their shopping invoice, a special tax refund form, and their passport at the store's designated refund point.
The first two stores to participate in Chongqing's "Buy and Refund" pilot are the Chongqing World Financial Center in the Yuzhong District and the Starlight 68 Plaza in the Jiangbei District. These malls are well-known for their wide range of brands and products, catering to the diverse shopping needs of overseas visitors.
Chongqing currently has 74 tax refund stores, with these two pioneering the "Buy and Refund" model. The city's tax department is looking to expand this number, inviting other stores that meet specific criteria to apply.
Lan emphasized the commitment of the Chongqing tax department to make tax refunds more convenient and efficient for overseas visitors, aiding Chongqing's goal to become a global hub for international shopping.