The Shanghai Municipal Commission of Commerce and five other departments jointly issued an action plan on July 3 to enhance the city's departure tax refund environment and increase tax-free spending by overseas visitors.

↘Key goals by 2027

More tax refund stores:

• Over 3,000 tax refund stores and 10,000 service points across the city
• More than 80 percent of stores offering the instant "refund-upon-purchase" service
• Over 80 percent of major shopping areas to have centralized refund service counters
• Full coverage of tax refund stores in central areas with high inbound visitor consumption

↘Main measures

Expand the network

- Set up new tax refund stores in:

• Shopping areas, pedestrian streets, tourist attractions, resorts, museums, airports, ports, hotels, and sports venues

- Focus on:

• Scenic spots, ancient towns, museum souvenir shops, cultural parks, theme parks, flagship hotels, venues for international sporting events and exhibitions

- Promote "refund-upon-purchase" services citywide and establish centralized refund locations where possible

Create tax refund specialty areas

- Develop specialized tax refund shopping areas combining:

• Shopping centers, department stores, open-air blocks, and street shops

- Build featured refund zones in major shopping areas like:

• Wukang Road-Anfu Road area, Julu Road-Fumin Road-Changle Road area, Xintiandi, and Yuyuan Road

- Establish tax refund landmarks in major tourist destinations, including ancient towns, theme parks, museums, and cultural & creative spaces

Promote Shanghai specialty products

Curate lists such as "Shanghai Gifts" and "Must-buy Souvenirs" featuring Haipai (Shanghai-style) characteristics, including:

• Fashion items, cosmetics, sportswear, smart products, and fine crafts

Boost domestic brand presence

- Increase the presence of:

• Time-honored brands, smart products, heritage crafts, cultural products, and high-quality local specialties

- Support:

• Collaboration between heritage brands, trendy domestic labels, and cultural and creative brands
• Flagship stores for domestic brands to become tax refund stores

Upgrade smart tax refund terminals

- Install self-service refund machines and refund mailboxes at:

• Pudong and Hongqiao airports

- Place self-service checkout devices at major stores

Diversify refund payment channels

• Ensure cash availability at refund locations
• Explore digital payment options for real-time refunds

Streamline the verification process

• Support stores in sealing and coding tax refund items to allow customs-free verification
• Pilot self-service customs checks at airports
• Improve refund services at cruise terminals

Strengthen financial support

• Optimize credit card pre-authorization for tax refund payments
• Explore micro-insurance products to improve the "refund-upon-purchase" experience

Lower the minimum spending threshold

Tourists can apply for tax refunds after spending 200 yuan (about $28) at a single tax refund store in one day.

Raise the cash refund cap

The cap for "refund-upon-purchase" is raised to 20,000 yuan per day per store to allow for luxury and high-end electronics purchases.

Promote the shanghai tax refund brand

- Introduce a Shanghai-specific refund logo with global appeal and local identity, to be used at:

• Tax refund stores, centralized refund locations, airports and ports

- Ensure clear signage at:

• Store entrances, checkout counters, and in-store guide signs

Improve tourist experience

- Publish a multilingual guide to the departure tax refund process

- Launch an electronic map of all tax refund stores

- Integrate map access into:

• Platforms such as Easy Go, the AI-powered travel assistant Hu Xiaoyou, and other tools used by overseas tourists for travel, navigation, and payments

Enhance global promotion

- Organize shopping promotions in:

• Consumption events such as "First in Shanghai", the Shanghai Shopping Festival, and the Shanghai Summer International Consumption Season, and global expos like the China International Import Expo

- Enhance promotion of tax refund services in:

• Southeast Asia, Japan, South Korea, the Middle East, and Europe through overseas networks of tax refund agencies and payment platforms

Sources: Shanghai Municipal Commission of Commerce, Jimeng AI