Chongqing - In January, Chongqing saw a 138% year-on-year rise in departure tax refunds, reflecting a boost in cross-border shopping and tourism. The Chongqing Municipal Tax Bureau reported over 3.4 million yuan (USD 470,000) in sales of tax rebate items, with total refunds reaching 346,000 yuan.

A shopping tax refund guide in both Chinese and English is available at the customer service center on the first floor of Block A, Starlight 68 Plaza in Jiangbei District, Chongqing. (Photo/Chongqing Municipal Tax Bureau)

"Tax refund processing is very convenient," said Chin Ling Fung, an expatriate from Malaysia, who recently traveled to Chongqing. He purchased a purse worth more than 20,000 yuan during his Chongqing World Financial Center visit. After presenting his passport and the VAT invoice for the purchase, he received a tax refund of nearly 3,000 yuan after filling out the Departure Tax Refund Application Form at the tax refund counter.

Wang Yongjian, deputy director of Chongqing Municipal Tax Bureau's Export Tax Refund Service and Administration Bureau, explained that overseas travelers can apply for departure tax rebates for purchases within 30,000 yuan made at the same pilot store on the same day. Currently, Chongqing has 88 departure tax rebate stores, including three "immediate tax refund" pilot stores.

Christian Dior, with two stores at the International Financial Center in Jiangbei District, became a departure tax rebate store in 2019. Ms. Zhang, a finance staff member at the store, shared that from January to February 20 this year, the two stores processed 10 departure tax rebate transactions, with total sales of 186,000 yuan and a rebate of 10,700 yuan.

China's transit visa-free policy, which allows transit travelers to stay up to 240 hours, has been continuously relaxed and optimized, accelerating cross-border tourism in Chongqing. The city is seeing growing demand for shopping as more overseas visitors are drawn to its tax refund options. 

Since March 2018, Chongqing began offering overseas passengers shopping departure tax refunds, and since January 3, 2024, the "immediate tax refund" pilot model has been in place. This model allows overseas travelers to receive their tax refund cash in RMB on the same day they make their purchase at pilot stores, making the process more convenient and promoting further consumption.

"Shops that are willing and eligible are welcome to apply to become departure tax refund stores," said Wang. To qualify, stores need to meet three basic conditions: be a general VAT taxpayer with a B or higher credit rating, install and use the departure tax refund management system, and maintain accurate records of sales of refunded items.