[Explainer] Shanghai Rolls Out Tax Refund in Your Palm Platform for Overseas Visitors

Shanghai was among the first cities in China to pilot the departure tax refund program. Now, the "Tax Refund in Your Palm" mobile service platform has been launched on a trial basis in selected tax refund stores across Pudong, Huangpu, and Jing'an districts.

The platform is an H5 mobile application that enables Shanghai to take the lead in realizing a fully online process covering tax refund invoicing, Customs verification, and fund transfer. It offers international visitors a faster, more transparent, and easier "refund at your fingertips" experience.

It has multilingual interfaces in Chinese, English, Japanese, and Korean. Overseas visitors can scan a QR code at tax refund points or visit https://taxrefund.sheca.com/login to access the system. Registration is quick and easy using a mobile phone number or email address, after which the system automatically generates a unique tax refund code – the "Shen Shui Code."

Users can also track their refund progress in real time, with both departure tax refunds and instant tax refund options available.

For those choosing the departure refund option, travelers can apply online for their refund using a Customs-verified Tax Refund Application Form. Once the electronic receipt is signed, the refund can be quickly transferred via bank remittance or Alipay.

For travelers who prefer the instant refund option, they can complete pre-authorization online, and the refund will be credited instantly via Alipay or other electronic channels. During the Customs verification process, there's no need for any paper documents – simply present the Shen Shui Code to complete verification.

This platform uses OCR technology to automatically read passport and ID information, saving travelers time by eliminating the need to submit documents.

During the National Day and Mid-Autumn Festival holiday, a visitor from Hong Kong completed the instant refund process after purchasing perfume at Plaza 66. From online pre-authorization to receiving the refund, every step was paperless, fully tracked on mobile, and clearly displayed. "This kind of paperless service truly enhances the shopping experience," the traveler said.

So far this year, Shanghai has processed tax refunds for nearly 100,000 travelers from 179 countries and regions. As of September 29, the city's total tax refund sales rose 83.8 percent year-on-year, with refund amounts up 82.9 percent. Shanghai continues to lead the nation in refund volume, while instant refund sales have surged by 21 times compared to last year.

Shanghai Sanlian (Group) Co Ltd is one of the first enterprises to pilot the "Tax Refund in Your Palm" platform.

"Since joining the pilot, the tax authorities have provided detailed guidance based on the needs of both travelers and our stores, and the results have been excellent," said Li Li, sales manager of the time-honored Hengdeli flagship store under Sanlian Group.

"With the fully online system, customers no longer have to wait at the counter – they can scan and operate independently, which also reduces our paperwork burden and allows staff to focus more on product introductions and after-sales services."

"In the past, our staff had to verify information and print forms manually. During peak shopping periods, we worried that long waiting times would affect customers' experience," said Wang Zhihua, chairman of Shanghai Jingdezhen Porcelain Artware Co Ltd.

"Now, travelers can apply online by themselves without waiting on-site. Customer satisfaction has improved significantly, and we've seen more repeat visitors and word-of-mouth recommendations. For refund stores, this paperless process also helps reduce operating costs and boost efficiency."