By Chen Miaolin
As the Dragon Boat Festival approaches, Hangzhou is upgrading its “Instant Tax Refund” policy to provide greater convenience for international visitors, blending technology and cultural tourism.
The policy, promoted on May 19, China’s Tourism Day, at Hangzhou Tower, encourages eligible overseas travelers to claim value-added tax (VAT) refunds immediately upon purchase, eliminating airport queues.
The “Instant Tax Refund” policy, now operational at 14 pilot stores in Hangzhou, enables foreign tourists and compatriots from Hong Kong, Macau, and Taiwan to receive cash or Alipay refunds amounting to 11% of their purchases. To qualify, shoppers must make single-day purchases totalling between ￥200 and ￥222,000 at designated stores, depart from Hangzhou Xiaoshan International Airport within 25 days, and retain unopened goods. A credit card pre-authorization--held for 25 days--ensures compliance with departure requirements.
Notably, travelers using Alipay International can receive refunds directly into their accounts without needing to link a bank account.
How does it work?
Shop & Secure Prepayment: Look for “Instant Tax Refund” signs. After purchasing, stores place a credit card hold and issue an instant advance payment.
Customs Verification: Present your goods, invoices, and identification at departure of Hangzhou Xiaoshan International Airport for customs verification.
Final Approval: Submit documents to the airport tax refund agency. If compliant, the pre-authorization is lifted, completing the refund.
Hangzhou aims to expand the pilot to 118 stores by 2025, supporting its ambition to become a global smart tourism hub. “We’re not just simplifying refunds--we’re crafting a future where technology elevates every journey,” said an official.