Shanghai has streamlined its departure tax refund process, aiming to reduce the time to issue a refund to just 10 minutes per applicant through digital upgrades.

The city has seen a surge in inbound tourism spending, with refund applications rising 180 percent year-on-year to 119,000 forms in the first three quarters of 2025.

Shanghai Takashimaya, a high-end retailer, offers sealed packaging for eligible goods priced between 200 yuan ($28.1) to 20,000 yuan, allowing instant verification of the tax-refunded goods at ports via QR scanning.

Other retailers, including Xiaomi, have introduced QR code systems for travelers to input personal details digitally, reducing manual errors and accelerating invoice categorization.

The reforms align with Shanghai's goal to become China's preferred first stop for inbound tourism. Sales of refundable goods reached 2.42 billion yuan from January to September.

Business managers and industry observers expressed a shared expectation for a smarter and more digitalized tax refund system to minimize manual input and enhance accuracy.

They also suggested enabling homegrown brands, including emerging consumption sectors, to collaborate to provide centralized tax refund services, further enhancing Shanghai's appeal to international tourists.

Source: Shanghai Observer

Shanghai shortens departure tax refund processing time to 10 minutes