What is the departure tax what to do with the departure tax

Friends who have traveled abroad, you have to pay attention to when you travel abroad, that is, tax rebate, tax rebate is not just talking about the tax when you shop, there is also the departure tax, about the departure tax is what, how to return, immediately tell you.

What is it

Departure tax refers to the tax collected by the airline on behalf of the local government when a citizen of a certain country purchases an international air ticket to leave that country.

China has been fully promoting the departure tax refund for a few years since 2015, and it was first implemented as a pilot run in some cities, so the publicity was not strong enough, and thus not many overseas travelers knew about it, so many people might have overlooked it. After going through the exit security check at the airport, there is a place that often passes you by: the "departure tax refund agent."

Unlike the overcrowded tax refund counters at overseas airports, there is almost never a line at the departure tax refund counter at Chinese airports. When traveling abroad, almost everyone knows to keep the invoice when buying high-priced items and get a tax refund at the airport before returning home.

If you subtract the tax refund, buying goods abroad can be very affordable, so many people are happy to buy luxury goods and electronic products abroad. For example, in Australia, with the invoice of purchases made within 60 days prior to the departure date, a refund of 9% can be made for purchases of more than 300 Australian dollars and a GST of more than 30 Australian dollars. In addition, the Australian law provides that if you bring back to Australia after the tax refund, you need to declare and pay the full amount of the tax refund for the goods that are more than AUD 900.

For example, if you buy a new laptop for A$2,699, including $245.36 GST, you will only spend A$2,453.64 after the tax refund, which is nearly 2,000 RMB cheaper than the Chinese price if calculated at the current exchange rate!

The more expensive something is, the more tax you can get back, so the tax rebate policy has boosted the desire of many overseas travelers to buy in Australia. But for the Chinese who have been naturalized in Australia, they may feel that they have suffered a lot of losses, because every time they go back to their home countries to buy gifts for their family and friends, they can no longer get a tax refund. In fact, there is no need to worry, because the money you spend in China, you can also get back, and the tax rebate rate is higher!

Chinese Tax Refund Guide

China's major airports have implemented a tax refund service that allows Chinese passport holders to get an 11% tax refund on their purchases. Taking the laptop mentioned above as an example, the price of the laptop in China is 14,188 RMB, and according to the stipulated tax refund rate, the amount of tax refund is 1,967 RMB, which is almost the same as what someone would get if they purchased it in Australia and then received a tax refund back in their home country, so you won't lose out at all! The other goods are also the same, as long as the following conditions are met:

(1) in the tax rebate designated stores to buy tax rebate goods, the amount of purchase of 500 yuan, and in accordance with the provisions of the tax rebate application form and other documents;

(2) the departure date from the date of purchase of rebate goods is not more than 90 days;

(3) in the port of departure departure for departure formalities, the tax rebate goods before leaving the country

(4) the purchased refundable articles are carried by the overseas traveler himself or consigned out of the country;

(5) the purchased refundable articles have been verified by the Customs and signed on the application form for tax refund;

(6) the refund is made at the designated tax refund agency.

What items are eligible for the tax refund policy? Including: clothing, shoes and hats, cosmetics, watches and clocks, electrical appliances, jewelry, health care and beauty equipment, kitchen and bathroom appliances, air conditioners, furniture, refrigerators, laundry equipment, televisions, computers, photographic (like) equipment, bicycles, stationery, sporting goods and so on, *** there are 21 major categories of 324 kinds.

But food, beverages, fruits, cigarettes, alcohol, automobiles and motorcycles are not eligible for tax rebates.

Can overseas Chinese enjoy the benefits

According to official information released, the implementation of the departure tax refund policy, like other countries' tax refund policies, is aimed at tourists with overseas passports. Overseas tourists refer to foreigners, overseas Chinese, and compatriots in Hong Kong, Macao and Taiwan who have resided in China for no more than 183 consecutive days; however, I am afraid that overseas Chinese who have green cards (i.e. PR) and still hold Chinese passports will not be able to enjoy this preferential policy.

Because the departure tax rebate policy is based on Hainan's offshore tax rebate port policy to promote the basis of Hainan's policy, and in Hainan's policy to enjoy the tax rebate policy is the biggest evidence of foreign passports (including foreign passports and passports of Hong Kong, Macao and Taiwan), although residents of the Chinese mainland called for high, but the specific policy for the domestic residents have not been able to come out.

In the announcement released by the Ministry of Finance, the title indicates that it is for "overseas travelers", and according to China's official practice, in the absence of special instructions, the first criterion for determining whether it is an "overseas traveler", that is, an overseas passport, followed by the departure ticket and other documents. The first criterion for determining whether a person is a "foreign traveler" is the foreign passport, followed by the departure ticket and other documents.

In other words, it is difficult for overseas Chinese to enjoy this preferential policy unless they have become foreigners and hold foreign passports.

So, the Chinese people who have been naturalized in other countries, if the next time to return to visit relatives, play, back to his country do not rush to the boarding gate, remember to go to the departure tax rebate agent to get back those in China to spend more money Oh!

How to get a tax refund in the United States

Compared to China's departure tax refund policy, the United States is relatively easy to get a tax refund.

Many big brands bought in the United States, the original price is very cheap, and the tax refund for these goods is even cheaper. However, a Chinese student who has studied in the United States said that not all goods can be refunded in the United States, which has requirements on where and when the goods are purchased.

The student said, "Basically, if a foreigner shops in the U.S. before leaving the country, he or she will need to produce a departure ticket, passport, and a receipt for the purchased goods when applying for a tax refund, and then he or she will get a tax refund for the purchased goods within 3-7 months of leaving the country. In general, the date on the receipt for the purchased goods is within one month before the departure date. There are three ways to receive a tax refund, either in cash, by check, or by bank card.

Swiping a credit card is convenient, and you can also accumulate airline mileage points for tickets or redeem merchandise, and more and more people are using them today, but it should be clear that in some cases, swiping a credit card is more costly and you lose money instead.

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The following three situations are more cost-effective when using a debit card or paying cash.

1, if you're close to reaching your credit card limit

Using a credit card requires you to keep an eye on your limit limit, said Ethan Dornhelm, vice president of U.S.-based credit scoring agency FICO, adding that the lower the balance-to-credit limit ratio, the better.

If you want a high credit score, it's a good idea to keep your credit card utilization rate below 30 percent - for example, if you have a $1,000 limit on your credit card, a 30 percent utilization rate is equivalent to swiping $300.

2. If you can't afford to pay off your card debt

In the U.S., about 22 percent of credit card holders owe card debt to improve their credit scores, which not only doesn't help your personal credit score, but increases the interest rate.

If you can't afford to pay back your card at the end of the month, don't swipe your card to make purchases, and don't swipe your card to buy risky stocks and investments; try choosing a no-interest program for turnover.

3, in the case of more charges

Sometimes you need to pay more fees to pay with your credit card, such as for taxes, tuition and mortgage payments.

Also, many credit cards charge a foreign transaction fee of about 3%, so if your credit card offers more than that in cash back, opt for a credit card, otherwise it's not worth it.