China’s updated refund-upon-purchase policy, launched in Shanghai over a month ago, is attracting international tourists who benefit from greater savings on shopping, as local authorities push for more stores to participate in the program.

Since the implementation of the updated policy, Shanghai added over 60 stores that offer refund-upon-purchase services to international tourists.

The city's taxation department said that over the past month, sales generated from this service increased by 86 percent year over year and the total tax refund grew by 77 percent compared with the same period last year.

"The refund-upon-purchase policy has been updated and its threshold was lowered from the previous 500 yuan (about 70 U.S. dollars) to 200 yuan (about 30 U.S. dollars). The change will allow more international tourists to enjoy the benefits of the policy," said Qiao Huijun, deputy general manager at the operation management department of the iconic Shanghai No. 1 Department Store.

To improve tax refund services for international tourists, commercial circles across Shanghai have set up self-service machines, where travelers can print out their tax refund application forms simply by scanning their passport and the QR codes on their receipts.
"It's my first time in Shanghai and I think all of the technology is very fast and easy to use and it's convenient," said a Philippine tourist after experiencing the self-service machine.

As announced by the updated policy, more businesses including popular global brands, souvenir stores, and time-honored brands will be encouraged to offer tax refund services.

"We encourage more stores that offer characteristic Chinese goods, especially those that sell Shanghai specialties, to provide tax refund service to international tourists," said Liu Zhenyu, deputy director at the Second Branch of Shanghai Municipal Tax Service.

In early April, China's State Taxation Administration rolled out a refund-upon-purchase policy. Under the new policy, foreign visitors can instantly claim value-added tax (VAT) rebates at tax-free stores, enabling them to reuse the refunded amount in real time for further shopping. Previously, VAT rebates were only available for withdrawal upon departure.