SZ pilots new tax refund practice

Shenzhen became the first city in China on Sunday to pilot a new practice aimed at optimizing its departure tax refund policy and enhancing the shopping experience for overseas travelers.
Under this new "one form, one package" practice, stores where overseas travelers purchase goods are required to pack the items in standardized, sealed bags that are matched one-to-one with tax refund application forms. At the border crossing, customs officers will only need to check the integrity of the sealed bags rather than inspect each individual item.
This change is expected to significantly improve the verification process efficiency. Lin Yuebo, a section chief of Shenzhen Customs, said, "The new practice will significantly streamline border crossing procedures and greatly shorten the waiting time for travelers."
The packaging bags are provided by the stores free of charge. If the packaging bag is damaged, the new practice will not apply, according to the city's commerce bureau.
The new practice is already underway at the Shenzhen Bay MixC shopping mall in Nanshan District and the MixC and Kingglory Plaza shopping malls in Luohu District.

A traveler poses with customs officers after completing the first tax refund under Shenzhen’s new “one form, one package” practice. Courtesy of Finance Bureau of Shenzhen Municipality

Over 400 stores in Shenzhen now offer "refund-upon-purchase" services following the introduction of the policy at the city’s airport in 2016, according to the local commerce bureau.
International travelers and those from China’s Hong Kong, Macao, and Taiwan who stay on the Chinese mainland for no more than 183 consecutive days are eligible for a tax refund.
Those who are eligible can instantly claim value-added tax (VAT) rebates at tax-free stores, which enables them to use the refunded amount for further shopping. Previously, VAT rebates were only available upon departure.
Travelers can claim refunds on purchases if they spend at least 200 yuan (US$27) at the same store on the same day and meet other requirements, according to the Ministry of Commerce on Saturday. The limit for cash-based tax rebates is 20,000 yuan.
According to Shenzhen Customs, a total of 16.4 million yuan in taxes was refunded in the first quarter of 2025, 1.58 times the amount refunded in Q1 of 2024.

WeChat Editors/Cynthia, Yunfei

Source：ShenzhenDaily