Shenzhen launched a tax refund counter on Monday at the Wenjindu Port, the city's first such service at a land border crossing.

Cross boundary travelers, including foreigners and residents of Hong Kong and Macao, could apply for value added tax (VAT) refund for their purchases valued between 500 and 110,000 yuan at tax-free shops across the city.

With the VAT refund rate stands at 11 percent and 2 percent service charge by the refund agency, eligible travelers could enjoy a 9 percent refund on the amount of sales invoice.

Total 337 retail outlets have been designated tax-free shops, including electronic appliance chains such as Suning and Mi Home, alcohol and tea dealers, department stores and luxury brand outlets in malls.  

The refund service has already been available at Shenzhen’s Bao’an International Airport and Shekou Cruise Home Port, catering to the demand from an increasing number of overseas travelers. As of Dec 4, the number of cross-boundary travelers in Shenzhen has exceeded 2 billion in 2024.

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A tax refund counter at a land crossing is particularly convenient to Hong Kong and Macao residents, who account of 50 percent of the service.

A Hong Kong visitor surnamed Lee, the first to receive a refund at the Wenjindu counter, obtained 122.4 yuan refund from a 1,360-yuan perfume bought from a MixC mall. She praised the efficiency of the refund service, adding: “I plan to buy some more gifts to take back to Hong Kong.”

The tax refund means some imported products are less expensive in Shenzhen, said another Hong Kong visitor who bought an 86,000-yuan bag in Shenzhen. With the 7,740-yuan refund, the saving amounts to several thousand, she said.

Shenzhen’s VAT refund policy

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The article is translated by China Daily from original reports in Chinese published on the official website of Shenzhen Special Zone Daily and WeChat Public accounts of Shenzhen municipal government and Luohu district government