[Explainer] 10 Things to Know About Shanghai's Departure Tax Refunds

Q: Who can claim a shopping departure tax refund in Shanghai?

Overseas visitors, including those from Hong Kong, Macau, and Taiwan, who have spent no more than 183 consecutive days on the Chinese mainland. Passports and mainland travel permits for Hong Kong and Macau residents are valid identification cards with last entry dates.

Q: How much do I need to spend to receive a tax refund?

The total amount of tax-refundable goods purchased by the foreign visitor at the tax-refund store on the same day equals 200 yuan (US$29.54).

Q: Which commodities are not eligible for tax refund?

(I) Articles listed as prohibited or restricted from exit in the People's Republic of China's List of Articles Prohibited or Restricted from Entry/Exit; (II) Goods eligible for VAT exemption policy sold at tax-refund stores; and (III) Other goods as prescribed by the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration.

Q: How long can I stay after shopping and claim tax refund?

Departure must occur no later than 90 days from the date of purchase of the goods for tax refund. The overseas traveler hereby undertakes that the purchased tax refund goods shall be carried by the traveler in person or as accompanied checked baggage, and that departure from a port of exit in this municipality shall take place within 28 days (inclusive) from the date of issuance of the Tax Refund Application Form.

Q: What new customs inspection rules went into effect on July 1, 2026?

Beginning July 1, 2026, Refund Application Forms with a refund sales value of less than 10,000 yuan will be subject to random physical verification at a set ratio. Physical verification is still required for each Refund Application Form for those with tax refund sales of 10,000 Chinese yuan or more.

Q: How do I calculate my actual tax refund?

The VAT refundable shall be calculated at an 11% tax refund rate based on the invoice amount (including VAT) of tax-refundable goods specified on ordinary VAT invoices.

To calculate VAT refundable, multiply the sales invoice amount (including VAT) by the tax refund rate (11%). Actual VAT refund = VAT refundable minus the service fee levied by tax refund providers (2%).

Since April 1, 2019, the tax refund rate has been 11% for things with an applicable tax rate of 13%, and 8% for items having an applicable tax rate of 9%.

Q: Can I receive my refund in cash or by bank transfer, and are there any limits on the amount?

The tax refund is in renminbi (RMB/yuan). Tax refunds can be issued in two ways: in cash or by bank transfer. If the tax refund amount is less than 20,000 yuan, either tax refund method can be used. If the tax refund exceeds 20,000 yuan, it must be paid via bank transfer.

Q: What requirements must I complete to use the Refund-upon-Purchase service in Shanghai?

All the following conditions must be met simultaneously:

(I) The amount of tax-refundable goods purchased by the same overseas visitor at the same tax-refund store within the same day exceeds 200 Chinese yuan;

(II) The tax-refundable products have not yet been utilized or consumed.

(III) The overseas visitor commits to personally carry or check in the acquired tax-refundable products and depart from a Shanghai port within 28 days (inclusive) after the Refund Application Form is issued;

(IV) The total sales amount of tax-refundable goods for which the same overseas visitor applies for service at the same eligible tax-refund store on the same day cannot exceed 220,000 Chinese yuan (inclusive), and the visitor must have a personal credit card available for operational pre-authorization guarantee.

Q: What happens if I leave later than expected due to trip changes?

If overseas visitors fail to comply with the arrangement and depart after the agreed-upon deadline, the tax refund agency will recover the advance payment via pre-authorization deduction on the credit card within three working days of the promised departure deadline expiring.

Q: Which multilingual official outlets can I contact for tax refund inquiries?

You can consult via the multilingual hotline 021-12366, the foreign language service page on the Shanghai Tax Service official website, or by entering the QR code, which is available in English, Korean and French.