Answer: Tax refund shop refers to an enterprise that reports to the Tax Service Administration of province, autonomous region, municipality directly under the central government and city specifically designated in the state plan (hereinafter referred to as the provincial tax service administration) for filing and from which overseas travels can apply for tax refund of purchased items upon leaving the country.

In accordance with Article 3 of the Announcement of the State Taxation Administration on the Release of the Measures for the Administration of Tax Refund for Overseas Travelers’ Purchase (Trial) (State Taxation Administration Announcement 2015, No. 41), enterprises that meet the following conditions can become tax refund stores after being filed by the provincial tax service administration:

(1) have the qualification of VAT general taxpayer;

(2) have the tax credit grade above B;

(3) agree to install and use the departure tax refund management system, and ensure that the system should have the operating conditions, and can timely and accurately submit relevant information to the competent tax authorities;

(4) have installed and used the VAT invoice system upgrade version;

(5) agree to set up a separate sales account of tax refund items, and ensure accurate accounting.

Source: State Taxation Administration;

https://www.chinatax.gov.cn/chinatax/c102449/c5232656/content.html