MASTERCARD and HNA Transforex Currency Exchange jointly launched China’s largest tax refund platform earlier this week, giving Chinese travellers the option of filing for tax refunds on overseas purchases from the comfort of their homes.
This new initiative follows hot on the heels of another scheme, which saw Beijing Caissa International Travel Service and Tianjin Bohai TransForex joining hands earlier this year to offer Chinese travellers the option of submitting their overseas shopping tax claims through more than 40 of the former’s outlets in Beijing.
Ann Cairns, president, international markets, MasterCard, said that MasterCard had invested in new technology and improved transaction security to offer this holistic platform.
It connects with consumers, financial, institutions, merchants, governments and businesses across more than 210 countries and regions. Refunds will take a minimum of three working days to be remitted to the customer’s MasterCard account.
Transforex president, Liu Jiang-Tao, said the company had previously focused solely on providing currency exchange but is now positioning itself as an integrated tourism services provider to offer international outbound shopping tax, tax rebates for shopping in Hainan and issuing of electronic travellers’ cheques.
MasterCard and Transforex are partnering seven leading global tax refund agencies for the platform, collectively commanding over 90 per cent of the global shopping tax refunds.
The Chinese are now the world’s highest-spending tourists, according to UN World Tourism Organization data, with outbound tourism steadily increasing in tandem with rising income levels.
Chinese outbound travellers spent some US$128.7 billion in 2013. But inadequate understanding of tax refund mechanisms, cumbersome procedures and language barriers saw tourists leave as much as three billion euros (US$3.8 billion) in unclaimed refunds behind.
Article by Jessie Liu. Translated by Ong Yanchun from TTG China e-Daily, September 23, 2014
