What does tax rebate mean when you buy something?

In some countries or regions, foreign tourists can apply for a refund of part or all of the consumption tax after purchasing goods, which is called "tax refund on purchases." This tax rebate mechanism aims to encourage the development of tourism and the growth of the local economy, providing a more attractive shopping experience.

Usually, tourists need to ask for a tax refund application form and invoice when purchasing goods in a store. When leaving the country, tourists need to present shopping vouchers, passports and other necessary supporting materials. After passing customs inspection, tourists can receive tax refunds at the tax refund counter, or have the tax refunds refunded directly to their personal accounts.

Tax rebates for shopping have obvious advantages for tourists, which can help them save costs and make travel activities more cost-effective. For businesses and locals, the reduction in tax revenue could have a negative impact on economic development. In addition, due to the abuse of tax refund mechanisms and illegal smuggling, sometimes tax refunds on purchases will also affect the reduction of national tax revenue and shrink the fiscal budget.