-- Beijing vice mayor Cheng Hong inspects VAT refund work for foreign passengers’ departing from China at BCIA 

Source: CARNOC.com/(ACT/Liu Yang and Wang Qiunan) On July 2, Beijing vice mayor Cheng Hong and related leaders of Beijing Municipal Bureau of Finance, Beijing Municipal Office of State Administration of Taxation, Beijing Customs District, Beijing Municipal Commission of Commerce, Beijing Port Office, Beijing Capital International Airport Co., Ltd. and Air China Limited visited Terminal 3 of Beijing Capital International Airport (“BCIA”) and inspected the value-added tax (“VAT”) refund work.

After arriving at the AIRCO gift store outside the secured area on the fourth floor of Terminal 3, Ms. Cheng Hong had a cordial talk to Ms.  Zhang Kunlan, general manager of Beijing Capital Airport Commercial & Trading Co., Ltd. (“ACT”), and store assistants. Ms. Cheng inquired the impacts of the departure VAT refund policy on the store’s sale services, whether foreign passengers are aware of the policy, the operation and the application of the departure VAT refund system. Ms.  Zhang Kunlan reported the preparations actively made for and the support actively arranged to VAT refunds by ACT and the new growth points brought by VAT refunds to the store. Store assistants demonstrated, on site, the service procedures for VAT refunds upon a foreign passenger’s departure from China. 

According to sources, the AIRCO gift store at Terminal 3 is the only store outside the secured area of BCIA offering VAT refund services to foreign passengers departing from China. On July 1, the first day on which the VAT refund policy started to be applied to foreign passengers departing from China, the AIRCO gift store received Julian Edward Evens and his two daughters, who would take a flight leaving China at 1:50 am for Britain. They bought two silk fans and a panda mouse pad at a price of RMB502. After receiving a VAT invoice and a VAT refund application form from a store assistant, they went to the VAT refund counter close to Gate E of Terminal 3. As Mr. Evens received his VAT refund of RMB45.18, the first VAT refund transaction to foreign passengers departing from China at BCIA was successfully completed.  

To ensure the successful performance of the VAT refund system for foreign passengers departing from China, ACT and Shunyi District Office of State Administration of Taxation jointly completed the installation and testing of the VAT invoice system and the departure VAT refund system within a very short period of time. During the preparation period, ACT’s management and heads of related departments kept working on site to ensure the effective implementation of the departure VAT refund policy. Going forward, ACT will keep strengthening its promotional efforts of the departure VAT refund policy in stores at BCIA, optimizing the VAT refund service procedures for foreign passengers departing from China, and providing pleasant shopping experience for more foreign passengers.   

Link: From July 1, 2015, Beijing started to implement the VAT refund policy for foreign passengers departing from China. When a foreign passenger departs from China, he/she will receive a VAT refund for the products with refundable VATs bought from stores applicable to the VAT refund policy. For the purpose of this policy, a foreign passenger refers to any foreigner, or any Hong Kong, Macau or Taiwan citizen that has stayed in the Chinese mainland continuously for no more than 183 days. To be eligible for VAT refunds, a foreign passenger shall: 1) spend no less than RMB500 on products with refundable VATs in one store applicable to the VAT refund policy on one day; 2) the products with refundable VATs shall not be used or consumed yet; 3) the day on which the passenger departs from China shall be within 90 days of the purchase day; and 4) the foreign passenger shall take or check in the products with refundable VATs by himself/herself.