Foreign Tourists Enjoy Instant Tax Refund in Chengdu

On April 9, a tourist from Indonesia went to the centralized “Buy and Refund Instantly” tax refund service point on the third floor of Chengdu International Finance Square (IFS), with the guidance of the staff, she signed an agreement and completed the credit card pre-authorization, and then received an immediate tax refund of about RMB 5,000 on the spot. She had spent more than RMB60, 000 on shoes, handbags and jewelry at designated tax refund stores in IFS.
Just a day earlier, the State Taxation Administration of China issued an announcement to promot the buy and refund service for outbound tourists, expanding the policy from pilot cities(Shanghai, Beijing, Guangdong, Sichuan, and Zhejiang) to nationwide implementation.Compare to the traditional departure-based refund process, this new model allows foreign visitors to receive tax refunds directly at designated store after making a purchase and encourage further in-store shopping.

The Refund-upon-purchase Model

In the regions where the outbound tax refund policy is in effect, international travelers can enjoy on-the spot tax refund at designated stores.After signing an agreement and completing credit card pre-authorization, they can immediately receive an amount in RMB equivalent to the eligible tax refund.

In July 2023, Chengdu launched the Instant Tax Refund practice and established Sichuan’s first designated tax refund CBD for overseas visitors at the Chunxi Road Tax Refund Zone.In 2024, the first centralized service point under this program was opened at IFS in the Chunxi Road CBD. So far, 49 shopping outlets have been designated as the Instant Tax Refund stores, covering a wide variety of goods including jewelry, clothing and more.

As of 2024, the city had a total of 429 departure tax refund stores, making a 34% increase year-on-year, the total departure tax refund amount reached nearly RMB30 million and the sales volume of goods exceeded RMB250 million, a more than 400% increase year-on-year. This momentum has continued into 2025, in the first quarter, both the sales volume of departure tax refund goods and the total refund amount increase by 270% compared to the same period of the 2024, reaching 41.4% of the full year figures of 2024, while the number of overseas tourists applying for departure tax refunds increased by 225%, and the number of tax refund transactions rose by 206% year on year.

Source: HomeinChengdu