Question: How do overseas travelers apply for the "Buy Now, Refund Now" service for shopping tax refunds upon leaving the Chinese mainland?

Answer:

1. The following four requirements must be met simultaneously to enable the service:

(a) The total sales amount of tax refundable items purchased by the same overseas traveler on the same day at the same tax refund store falls between 500 yuan ($69) and the specified limit, which is subject to local announcements.

(b) The tax-refundable items have not been used or consumed.

(c) The overseas traveler commits to leaving the Chinese mainland with tax-refundable items, either as carry-on luggage or checked baggage, via a local port within the specified time duration after shopping, and the overseas traveler has not stayed on the Chinese mainland for more than 183 days.

(d) The overseas traveler personally holds a credit card capable of a pre-authorization guarantee.

2. Processing steps:

(a) After shopping at a pilot tax refund store, the overseas traveler obtains a value-added tax  invoice for the tax-refundable items and an "Application Form for Overseas Travelers' Shopping Tax Refund upon Departure."

Note: To obtain the "Application Form for Overseas Travelers' Shopping Tax Refund upon Departure," valid identification must be presented. Valid identification includes a passport (held by foreign travelers) with the last entry date marked or collectible, a mainland travel permit for Hong Kong and Macao residents (held by travelers from Hong Kong and Macao), or a mainland travel permit for Taiwan residents (held by travelers from Taiwan), etc.

(b) The overseas traveler goes to the "Buy Now, Refund Now" service point, uses their credit card for the pre-authorization guarantee, fills out the "Rights and Obligations Notice for Departure Tax Refund Convenience Services", and receives an equivalent amount of Chinese yuan corresponding to the actual VAT refundable amount.

(c) Upon departure, the overseas traveler should first voluntarily present the tax refundable items, the sales invoice for the tax refundable items, and the "Application Form for Overseas Travelers' Shopping Tax Refund upon Departure" to the customs for verification of the tax refundable items.

(d) Process the relevant confirmation procedures for tax refunds at the tax refund agency in the departure zone or directly submit the relevant materials to the "Buy Now, Refund Now" business-exclusive mailbox located at the port of departure.

3. For those who have completed the "Buy Now, Refund Now" process but exceed the deadline of leaving the Chinese mainland or do not meet other conditions for "Buy Now, Refund Now" services, the agency will deduct the VAT already refunded through the credit card pre-authorization operation. Overseas travelers who meet the conditions can process tax refunds through the general departure tax refund procedure.

Note: The "Buy Now, Refund Now" service is an innovative measure proposed to enhance the convenience of refunding taxes upon departure. Overseas travelers can apply to receive an equivalent amount of Chinese yuan corresponding to the actual VAT refundable amount on the day of shopping at "Buy Now, Refund Now" pilot tax refund stores or designated collection points within pilot shopping malls.

Overseas travelers refer to foreigners and compatriots from Hong Kong, Macao, and Taiwan who have resided continuously within the Chinese mainland for no more than 183 days.

Tax refundable items refer to personal items purchased by overseas travelers at tax refund stores that meet tax refund conditions.