China has introduced its first tax refund service via overseas e-wallets, allowing travellers departing from Shenzhen to instantly claim refunds as part of Beijing’s broader efforts to boost inbound tourism.
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Backed by the Shenzhen Taxation Bureau and the local branch of the People’s Bank of China, Ant International’s Alipay+ global payment platform partnered with tax refund agent Guangdong Huaxing Bank to launch the service on Monday, the city government announced on its official social media account.
Outbound travellers need to obtain a tax refund form after shopping and complete a pre-authorisation check at a service point before scanning the Alipay+ QR code for the instant transfer. The city government said the length of the process would be cut from days to “seconds”, with Hong Kong users the first to access the service through AlipayHK.
Ant International is the global business arm of Ant Group, an affiliate of Alibaba Group Holding, which is the owner of the South China Morning Post.
The initiative came as part of China’s wider efforts to attract international visitors, stimulate consumption and counter the impact of its trade war with the United States.
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In April, China lowered the minimum purchase threshold for tax refunds from 500 yuan (US$70) to 200 yuan and doubled the cash refund ceiling to 20,000 yuan, with no cap on bank transfers. More localities and stores now offer refund services as part of the expanded service.