It is now easier for international visitors to Shanghai to claim tax refunds thanks to the city's first metro-based tax refund counter, which recently opened at Metro Connect, near Exit 6 of Yuyuan Garden Station.

About a five-minute walk from Yuyuan Garden, the counter accepts refund claims from participating tax refund stores across Shanghai.

How does the service work?

The new counter is part of Shanghai's "refund-upon-purchase" service, under which eligible overseas visitors can receive an advance payment in renminbi equivalent to the actual tax refund amount after signing a service agreement and completing credit card pre-authorization.

To qualify, visitors must:

• Spend between 200 yuan and 222,200 yuan at the same participating store on the same day.
• Obtain the sales invoices and the Tax Refund Application Form for Overseas Visitors.
• Hold a credit card that supports pre-authorization as a guarantee.
• Personally carry or check in the goods when departing China through the departure port specified in the service agreement within 28 days of purchase and within 183 days of their most recent entry.

Two steps to complete before departure

Receiving the advance payment does not complete the tax refund process. Visitors must still complete two steps before leaving China.

1. Customs verification

When departing China, visitors must present their tax-refund goods and supporting documents to Customs for verification.

Visitors should have the following ready:

• The goods, which must remain unused and unconsumed.
• The Tax Refund Application Form for Overseas Visitors.
• The sales invoices for the goods.
• Valid identification documents.

Customs' physical inspection requirements depend on the total value of the tax-refund goods:

• Below 10,000 yuan: Customs randomly selects a proportion of applications for physical inspection. Applications not selected are exempt from physical inspection.
• 10,000 yuan or more: All applications are subject to physical inspection.

2. Review by the tax refund agency

After Customs has completed its verification and stamped the application form, visitors can deposit the stamped Tax Refund Application Form for Overseas Visitors and the corresponding sales invoices in the dedicated "refund-upon-purchase" mailbox in the departure lounge, without queuing at the tax refund counter.

The tax refund agency will then review the documents and, if all requirements are met, release the credit card pre-authorization to complete the process.

Sources: Shanghai Morning Post, Shanghai Metro, Shanghai Municipal Tax Service of the State Taxation Administration, Bank of China