China has introduced new measures to improve its departure tax refund system further, making the process more convenient for overseas visitors. If you're planning to shop in Shanghai before leaving China, here are answers to some of the most frequently asked questions, along with the latest updates.

Q1: What payment methods are available for departure tax refunds in Shanghai?

A1: Overseas visitors applying for departure tax refunds at designated refund counters at Shanghai's departure ports can choose from three payment methods:

• Cash
• Bank transfer
• Third-party digital payment

All refunds are issued in renminbi. Alipay is the first third-party payment platform supported by Shanghai's departure tax refund service.

Q2: Who is eligible for Shanghai's refund-upon-purchase service?

A2: To use the refund-upon-purchase service, all of the following conditions must be met:

• You spent between 200 yuan and 222,200 yuan (about $29.54 to $32,819.77) at the same tax refund store on the same day.

Note: Purchases exceeding 222,200 yuan are not eligible for the refund-upon-purchase service and must go through the standard departure tax refund process.

• The tax refund items are unused and unconsumed.
• You will leave China through a Shanghai port within 28 days (inclusive) of the purchase date and within 183 days of your most recent entry. The items must accompany you in either your hand luggage or your checked baggage.
• You have received both the sales invoice(s) and the Tax Refund Application Form for Overseas Visitors.
• You have a credit card that supports pre-authorization.

Q3: How do I use the refund-upon-purchase service?

A3: The process consists of three steps.

Step 1: Apply at a participating store

At a participating store, sign the service agreement and present a credit card that supports pre-authorization. The store or tax refund agency will then issue the Tax Refund Application Form for Overseas Visitors and provide an advance payment in renminbi equal to the refund amount.

Step 2: Complete customs verification before departure

At the departure port, follow the Customs instructions and have the following ready:

• The unused tax refund items
• The Tax Refund Application Form for Overseas Visitors
• Your valid passport or travel document
• The sales invoice(s)

If everything is in order, Customs will stamp the application form.

Step 3: Complete the process with the tax refund agency

After Customs verification, submit the following to the tax refund agency in the departure port's restricted area:

• Your valid passport or other identity document
• The Tax Refund Application Form for Overseas Visitors bearing the Customs verification stamp
• The sales invoice(s) for the tax refund items

The tax refund agency will review the documents and complete the process based on the applicable circumstances.

If you depart from the designated departure port within the agreed period and meet all eligibility requirements, the tax refund agency will release the pre-authorization on your credit card, complete the refund process, and treat the prepaid refund as your final tax refund.

If you comply with the agreement but do not meet the eligibility requirements, the tax refund agency will recover the prepaid refund via the pre-authorization on your credit card. No tax refund will be issued for that purchase.

If you fail to comply with the agreement by departing after the agreed departure date or from a port other than the designated departure port, the tax refund agency will recover the prepaid refund via the pre-authorization on your credit card within three working days of the agreed departure date. You may still apply for a tax refund under the standard departure tax refund procedure when you leave China.

Q4: Can I shop in one city and complete the refund-upon-purchase process in another?

A4: Starting Sept 1, 2026, the refund-upon-purchase service will support cross-location processing.

When a participating store issues the Tax Refund Application Form for Overseas Visitors, it may upload your valid ID, allowing the tax refund agency at the place of purchase to review the materials online.

When you leave China, the tax refund agency at your departure location will verify your identity and complete the refund process under existing rules.

Source: Shanghai Municipal Tax Service of the State Taxation Administration