by LIU Sunan

According to the Shanghai Tax Service, over 63,000 travelers from 167 countries and regions claimed departure tax refunds in the city between January and June, generating nearly 90,000 refund applications. The "instant refund" policy, allowing travelers to immediately receive cash in renminbi when purchasing eligible goods, has rapidly expanded since its pilot in 2019.

Shanghai's tax-free shopping network has grown from 27 stores a decade ago to over 1,400 today, spanning Nanjing West Road malls, heritage boutiques in Yuyuan Garden, and independent designer shops. This April, a policy overhaul raised the cash refund limit to 20,000 yuan and lowered the minimum spending threshold to 200 yuan.

Emerging retail concepts have quickly benefited. Labelhood, a local designer incubator in Jing'an District, recorded 120 refund transactions in two months after gaining tax-free status. "The improved policy has boosted the visibility and competitiveness of Chinese independent brands," said Labelhood head PENG Yaodong.

Factory outlets have joined in, with companies like Weicon Optical offering "factory-direct prices plus tax refunds" to attract global shoppers.

The model has also transformed major retail hubs. At Plaza 66, China's first centralized cash refund center eases the burden on individual stores by handling payouts on their behalf. Nearly 90 tenants now support instant refunds, including Goyard, which alone issued over 1,200 refund slips worth 26.3 million yuan in the first half. Overall, Plaza 66’s tax-free sales exceeded 400 million yuan, up nearly 80% year-on-year.

To improve convenience, Shanghai has opened 17 centralized refund points across key districts and launched innovations such as self-service application machines and Alipay instant transfers. In June, the city debuted its first "citywide refund" point at Bund Central Plaza, enabling tourists to consolidate cash refunds after shopping anywhere in Shanghai.

Officials plan to expand citywide refund coverage and install more self-service machines in high-traffic malls to further streamline the experience.