Overseas tourists shopping in a Ningbo mall. (Photo by Sun Jiajun)

Ningbo’s tax refund policy for overseas travellers sees new progress: On August 4, reporters learned from the Ningbo Municipal Bureau of Commerce that the city is accelerating the optimisation of its tax refund consumption model for departing overseas tourists, and expanding the number of tax refund stores. As of now, Ningbo has added more than 10 new tax refund stores this year, bringing the total to over 50.

These include companies such as Ningbo Peacebird Fashion Clothing Co., Ltd., Ningbo Yongning Suning Tesco Trading Co., Ltd., Ningbo Erbai Trading Co., Ltd., Ningbo City Plaza Development and Operation Co., Ltd., Ningbo Hankyu Department Store Co., Ltd., and Yintai Department Store Ningbo Haishu Co., Ltd., Tianyi Plaza Branch.

Overseas tourists are enjoying the “immediate purchase and refund” service. (Photo by Sun Jiajun)

Optimising departure tax refunds to boost consumption is an internationally common practice. A departure tax refund refers to the policy of refunding the value-added tax (VAT) to overseas travellers at the point of exit for eligible goods purchased in designated tax refund stores.

Ningbo was one of the earlier cities to implement overseas traveller shopping tax refund services. Existing tax refund stores are mainly located in key business districts and tourist attractions in Haishu District, Yinzhou District, Jiangbei District, Beilun District, Xiangshan County, and Ninghai County.

In addition to increasing the number of stores, Ningbo is also diversifying the range of tax refund products, focusing on promoting domestic brands and trendy time-honoured products such as Peacebird apparel, Yuankang Cloth Shop garments, and Quanyou Food.

“No matter if it’s Ningbo speciality goods, time-honoured brand products, daily necessities, or high-end luxury items, overseas tourists can enjoy a more diverse selection, less time spent, and a better overall consumption experience in Ningbo,” said a relevant official from the Municipal Bureau of Commerce.

Last weekend, an overseas traveller purchased a Van Cleef & Arpels bracelet at Ningbo Hankyu and received an on-site tax refund of over 4,000 yuan in cash, calling it a great deal. The finance manager at Ningbo Hankyu told reporters that since the “immediate purchase and refund” service was introduced in May, tax refund orders in July have increased by 60% compared to April.

In the next stage, Ningbo’s commerce, culture and tourism, and tax departments will continue to encourage the establishment of tax refund stores in large business districts, tourist attractions, hotels, and other areas with high concentrations of overseas tourists, to create a consumption cluster effect. They will also step up efforts to promote the “immediate purchase and refund” service, reducing the need for overseas tourists to travel between locations, improving the tax refund experience, and helping “Made in Ningbo” and “Intelligently Made in Ningbo” products break into international markets.

Since December 1, 2020, overseas tourists shopping in Zhejiang Province have been able to enjoy the departure tax refund policy. “Overseas tourists” refers to foreigners and Hong Kong, Macao, and Taiwan compatriots who have stayed in mainland China for no more than 183 consecutive days.

For the tax refund to apply, the same overseas tourist must, on the same day, purchase eligible goods worth at least 200 RMB from the same tax refund store. The date of departure must be within 90 days of the purchase date. The goods must be unused or unconsumed, and must be carried by the tourist personally or checked as accompanying luggage when leaving the country.

Source: Yongpai

Reporter: Sun Jiali

Editor: Ye Ke