CHONGQING (CQNEWS) -- Chongqing rolled out trial instant tax refund services at some VAT-refund-qualified shops, where travelers from outside China’s mainland can get instant value-added tax refunds upon purchases, said Chongqing Municipal Tax Service on January 3.

Instant tax refund services mean that travelers from outside China’s mainland who purchase items eligible for value-added tax refunds in a store participating in the pilot tax refund scheme may after being issued with invoices and tax refund application forms pursuant to the provisions, apply to the store on the same day to collect cash in RMB equivalent to the amount of VAT actually refunded for the tax refund items.

Compared with the traditional method of applying for tax refund at airports and ports upon departure, instant tax refund services allow travelers to receive cash refunds directly at the stores as part of an effort to boost consumption.

"Pilot stores will return cash to customers first, after which there will be pre-authorization on the credit card account of the customers. At the time of departure, the tax refund agency shall dissolve the pre-authorization for the customers." After inbound tourists have made purchases in a pilot shopping mall, the mall will issue the Departure Tax Refund Application Form for Inbound Tourists and shopping invoices to the tourists, said Lan Tingyi, Director of the Export Tax Refund Service and Administration under Chongqing Municipal Tax Service. Inbound tourists may apply for a departure tax refund at the centralized refund points at the shopping mall with a Departure Tax Refund Application Form for Inbound Tourists, shopping invoices, and a passport to enjoy instant tax refund services.

Within 25 days upon the issuance of a tax refund application form, an overseas tourist who departs from Chongqing Jiangbei International Airport may carry with him/her or consign for shipment the items eligible for tax refund, present a Departure Tax Refund Application Form for Inbound Tourists and sales invoice of the items eligible for tax refund, and depart upon the verification of the customs.

Now Chongqing has 74 VAT-refund-qualified shops, including two shops eligible to offer instant tax refund services: Chongqing Huanjin Business Management Co., Ltd., the operator of the World Financial Center in Yuzhong District, and Uni-Starlight (Chongqing) Department Store in Jiangbei District.

“Chongqing tax authorities will continue to expand the layout of the departure tax refund stores citywide and welcome willing and qualified stores to apply for becoming tax refund stores." Only three basic conditions are required for a store eligible for tax refunds, the most important of which is that it must be a general VAT payer with a tax credit rating of Grade B or above. The remaining two conditions are as follows: to install and use the departure tax refund administration system, to submit relevant information to the competent authority in a timely and accurate manner; and to keep separate accounts for tax refundable items, said Lan Tingyi. (Translated by Yuki, Fathom Language Limited)