Inbound visitor numbers in Shanghai grew steadily in the first half of 2026, helping boost spending by overseas visitors. Departure tax refund sales rose 63.2 percent year-on-year, while refund-upon-purchase sales rose 290 percent.

More than 500 new tax refund stores were added during the period, bringing the citywide total to more than 2,400.

On July 1, the national departure tax refund 2.0 policy took effect. The updated policy introduces spot checks for lower-value refund applications and fully paperless processing. Shanghai has also launched digital tools, with automated tax refund machines upgraded to Version 2.0 now available across all major shopping areas in the city.

What is the refund-upon-purchase service?

Unlike the traditional departure tax refund process, this new model allows overseas visitors to receive their VAT refunds on the spot at the time of purchase, making the savings more immediate and tangible.

How it works

Note: Starting from July 1, 2026, refund applications involving sales of less than 10,000 yuan (about $1,470) will be subject to spot checks rather than mandatory physical inspection of goods.

Applications involving sales of 10,000 yuan or more will continue to require full verification.

Want to learn more?

Check out our online special, which offers key information such as:

• Policy overview: What the refund-upon-purchase service is and how it differs from the standard departure tax refund
• Eligibility checklist: See if you qualify in seconds
• Step-by-step guide: Understand the process at a glance
• Participating shopping centers, stores, and tax refund counters: Where to shop and apply
• FAQs: Clear answers to common questions

Updated Aug 25, 2026

Source: Shanghai Municipal Tax Service of the State Taxation Administration