This year, China continues to be a top travel destination, with shopping trips growing increasingly popular. As the first stop for many tourists entering China, Shanghai has been making innovative moves regarding the departure tax refund policy. Currently, Jing’an District hosts over 400 tax refund stores, representing more than half of Shanghai’s total.
According to official statistics from the Jing’an District authorities, from January to July, the district maintained its leading position in Shanghai for both departure tax refund sales and refund-upon-purchase services. Plaza 66 consistently ranked first in tax refund sales, registering a nearly 60% year-on-year (YoY) increase, while HKRI Taikoo Hui rose to third place in refund-upon-purchase sales.
How does Jing’an sustain the momentum of “Shopping in China”? What tangible results has the upgraded departure tax refund policy achieved, and what factors contribute to its appeal for inbound consumption?
Processing time cut from 10–15 minutes to just 3–5 minutes
Easier tax refunds and friendlier services
The optimized measures for departure tax refunds have become a significant driver in stimulating inbound consumption. Since the beginning of this year, Zhang Yuan (or Zhang’s Garden) has been upgraded to one of the first citywide tax refund service hubs. Eligible international visitors can now enjoy a streamlined refund-upon-purchase service at Zhang Yuan after shopping at any tax-refund store across the city. Furthermore, Jing’an District has pioneered the installation of self-service tax refund terminals in major shopping centers to expedite payment processing, invoicing, and verification procedures for tax refunds.
Since August 11, HKRI Taikoo Hui has installed one of Shanghai’s first self-service tax refund machines at its concierge desk on Level 1. The machine supports Alipay tax refunds, offering international travelers a more convenient refund experience. This machine enables international shoppers at designated refund-upon-purchase stores in HKRI Taikoo Hui to complete refund procedures independently by simply scanning their identification documents, uploading tax refund information, printing application forms, and selecting payment methods. The processing time has been cut from 10–15 minutes to just 3–5 minutes, thereby significantly improving handling efficiency.
“In the first week after the self-service tax refund machine was installed, it handled half of all refund applications,” said Yang Cheng, senior customer service supervisor at HKRI Taikoo Hui. He also noted that in July, the mall saw a 200% increase in tax refund forms issued compared to June. So far this month, nearly 40 refund forms have been processed in just the first three weeks, putting it on track to exceed July’s results.
Meanwhile, HKRI Taikoo Hui has been steadily improving its supporting services. Enhancements include adding on-site promotional materials and facilities such as bilingual brochures explaining the refund-upon-purchase service, installing clear signage throughout the mall, and providing multilingual translation devices at the concierge desk. It has also strengthened policy promotion on social media platforms like WeChat and Xiaohongshu, taken part in Jing’an’s departure tax refund activities, and conducted specialized training for store brands on departure tax refund procedures.
The number of tax refund stores expanded from 8 to over 30
More diverse options and an enhanced international shopping experience
Beyond increasingly convenient tax refund services, the concentration of premium brands and diverse shopping options also enhances the appeal for inbound consumption. The recent docking of the world-exclusive “Louis” at HKRI Taikoo Hui has drawn travelers from across the globe, boosting the mall’s sales by over 70% with sustained popularity. Through the world-class commercial exemplar, HKRI Taikoo Hui continues to expand its global consumption landscape. Under its brand upgrading strategy, the mall collaborates with numerous international brands to deliver premium experiences for both Chinese and international consumers through exclusive and personalized lifestyle offerings.
A staff member at an international fashion brand in the mall shared that the store has issued an average of two to three tax refund forms per week recently. “We have observed a significant increase in international visitors recently, many of whom actively ask about tax refunds when they shop,” the staff said. “After we explain how the refund works, they are often pleased to learn they can complete it right at the mall’s service counter with the documents we provide — no need to go to the airport.” The staff added that the streamlined refund process and supportive policies have led to higher conversion rates among international shoppers.
Yang Cheng noted that internationally renowned brands with excellent reputation and premium quality are highly favored by international consumers. Some products in participating stores even offer competitive pricing advantages after tax refunds compared to certain global markets, making them a preferred choice among international shoppers. Among the brands eligible for the refund-upon-purchase service, popular choices include Louis Vuitton, Moncler, Rimowa, and Rolex. Consumers using the service come from 22 countries and regions, including Italy, the United States, Australia, Malaysia, France, Japan, and Germany, with a particularly high number of consumers from Hong Kong and Taiwan, China.
Since being designated as a new centralized tax refund location in Shanghai in July last year, HKRI Taikoo Hui has expanded its tax-refund stores from 8 to over 30. These include luxury brands such as Louis Vuitton, Rolex, Moncler, Zegna, and Balenciaga, spanning multiple categories including jewelry & watches, fashion, footwear, leather goods, cosmetics/skincare/fragrances, and lifestyle products. Another 20+ stores are planning or applying for tax-refund status, which will provide international shoppers with even more choices in the future.
HKRI Taikoo Hui’s remarkable performance in inbound consumption reflects the continuous enhancement of Jing’an District’s departure tax refund services. Jing’an District is developing Version 3.0 of its departure tax refund system, introducing the innovative “EASY Refund” service brand, and establishing a “5-Minute Tax Refund Convenience Zone” across the district. By establishing a comprehensive service network, enhancing digital capabilities, and streamlining service procedures, the district aims to offer international travelers convenient departure tax refund and refund-upon-purchase services. These efforts are part of Jing’an’s broader strategy to build a world-class tax refund service environment and strengthen the appeal and competitiveness of the district as an international consumption hub.