On June 17, Shenzhen's Dongmen Pedestrian Street launched its first centralized "instant tax refund" point for outbound travelers. After shopping, overseas visitors can sign an agreement and complete a credit card pre-authorization to receive their tax refund on the spot. Shenzhen authorities also plan to roll out an Alipay electronic refund function by the end of June, allowing Hong Kong visitors to opt for refunds via Alipay.
In April this year, China's State Taxation Administration revised its outbound tax refund management measures, introducing multiple facilitative policies. These include lowering the minimum refund threshold from 500 RMB to 200 RMB, increasing the cash refund limit to 20,000 RMB, and relaxing the criteria for tax-refund stores to include businesses with tax credit ratings of A, B, or M. According to Shenzhen's tax bureau, from January to May this year, sales of tax-refundable goods in Shenzhen surged by over 2.1 times year-on-year, with "instant tax refund" sales skyrocketing by more than 20 times. Currently, Shenzhen's tax and commerce bureaus are selecting the tenth batch of tax-refund stores, expected to add over 100 new designated retailers.
Tax refund ports cover sea, land, and air
Shenzhen has established tax refund ports covering sea, land, and air travel. Luohu District, a commercial hub with three entry ports, is building a comprehensive tax refund service network. The district is advancing autonomous bus routes connecting ports to shopping areas, offering overseas visitors end-to-end convenience from entry to shopping and tax refunds. These initiatives are accelerating Dongmen's transformation from a traditional commercial zone into an international shopping destination.
Dongmen's Lilian Sun Department Store is Luohu District's second "instant tax refund" hub, with 66 merchants now offering the service across international brands, fashion, electronics, and more. Overseas shoppers need only sign a refund agreement and complete a credit card pre-authorization to receive their refund at the store's service counter, compressing processing time to minutes for a seamless "shop-and-refund" experience.
Shu, store manager of Tissot at Lilian Sun, explained that about 9% of the refund (11% VAT minus a 2% agency fee) is issued immediately in cash, enhancing the shopping experience. For example, a Tissot Seastar watch priced at 6,950 RMB qualifies for a 625.5 RMB cash refund, reducing the effective payment to 6,324.5 RMB—a 9.1% discount.
Alipay e-refunds coming soon
Huang, Deputy Director of Luohu District Tax Bureau, stated that to further improve visitor satisfaction, multiple measures are being implemented to optimize refund services. An electronic refund option via Alipay will debut by the end of June, marking China's first Hong Kong e-wallet refund channel. This means Hong Kong tourists can receive refunds via Alipay alongside cash or bank transfers.
A Hong Kong resident praised the convenience, having previously received a 1,362.8 RMB cash refund at Shenzhen MixC's DJI store for a drone purchase. "I don't even use cash in Shenzhen anymore—I had to deposit the refund at a bank. E-refunds will be much easier."
Following Shanghai's pilot of Alipay "touch-and-go" instant e-refunds, Shenzhen will launch a digital tax refund map in late June, displaying all refund stores citywide. A self-service mini-program will also debut, allowing travelers to upload refund documents online for real-time verification. For "instant refund" claims, approvals and transfers will be near-instant. Shenzhen will further expedite store approvals, targeting fast-tracked expansions in core hubs like Sun Department Store.
More 'digital money'
The Shenzhen Branch of the People's Bank of China released statistics yesterday showing that as of May 19, 2025, Shenzhen's cross-boundary passenger flow had exceeded 100 million trips, reaching this milestone 24 days earlier than in 2024. Notably, foreign nationals accounted for 2.64 million trips, marking a 41% year-on-year increase. From January to May, Shenzhen's inbound consumption market remained robust, with overseas visitors making 9.74 billion RMB in non-cash payments—a 37% jump compared to the same period last year.
(Source: Wen Wei Po; Journalist: Guo Ruoxi; English Editor: Darius)
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