Chinese city allows foreign travellers to reclaim VAT on purchases
If you’re planning on visiting Shanghai soon, then you may want to consider bringing along an extra bag from all that shopping you’re going to do. Thanks to a new Tax Free Shopping scheme, visitors to Shanghai from Malaysia can now save 9% on their purchases.
Effective immediately, Global Blue, the world's leading Tax Free Shopping provider, has partnered with Bank of China to make the service in Shanghai widely available and help retailers to provide the best Tax Free Shopping service to their international customers.
Almost 200 stores in Shanghai have already signed up to the TFS scheme, including major department stores such as Takashimaya, Pacific, Parkson and Bailian Department Stores as well as luxury brands, Chanel, Hermes, Tiffany and Louis Vuitton.
High street names, Zara, Bershka and Marks & Spencer and local retailers, Silk King, Lao Feng Xiang Jewellery and Chow Tai Fook Jewellery to name a few have also signed on to offer the tax free incentive.
In a few simple steps, Malaysian shoppers from can make savings on both consumable and non-consumable goods that they will export in their personal baggage, including fashion and beauty items, watches and jewellery, and alcohol.
To claim the VAT refund, shoppers simply need request a Tax Free Form and VAT invoice from the shop staff, visit the Customs desk at the airport upon departure and present the completed Tax Free form and VAT invoice, passport, receipts and unused purchases for verification. Once verified, Customs will provide a stamp for the Tax Free form allowing the shopper to claim the refund via the refund counter at the airport.
As part of the scheme Global Blue will also work with Bank of China to increase the number of retailers signed up to the scheme and will help participating retailers to better advise foreign visitors using the Tax Free Shopping service.
The minimum purchase amount to qualify for a Tax Refund is 500RMB (approximately 318MYR). The scheme is available to all foreign visitors and residents from Hong Kong, Macau and Taiwan.