In a strategic move to unleash the full potential of inbound tourism consumption, the Chinese mainland has rolled out an expanded instant tax refund policy for overseas shoppers. This new initiative, announced by the State Taxation Administration (STA) on April 8, enables foreign visitors to receive their tax rebates immediately after making purchases at designated stores.
Previously piloted in major cities such as Beijing, Shanghai, Guangzhou, Hangzhou, and Chengdu, the on-the-spot tax refund service now covers the entire country. The process is designed with efficiency in mind: after completing a credit card pre-authorization, tourists can get their refund instantly, while customs verify their identity and purchased goods upon departure.
There are a few conditions for the refund. For example, foreign visitors in central China's Hunan Province need to ensure their stay does not exceed 183 days and must depart from Changsha or Zhangjiajie airports within 17 days. Additionally, a single tourist can make tax-refund purchases worth between 500 yuan (approximately $58) and 50,000 yuan from the same shop on the same day.
The policy also simplifies the refund process in many shopping malls. Instead of filling out forms manually, tourists can simply show their passports, and an integrated system will automatically retrieve their shopping details, compute the refund amount, and finalize the transaction with a signature.
Testimonials from travelers highlight the policy’s efficiency. At a tax-refund store in Yiwu City, Turkish visitor Marck shared with China Media Group (CMG) that he now enjoys an 11 percent value-added tax (VAT) refund on the spot during his frequent business trips. Similarly, another traveler, Irina, was impressed to learn that her refund was processed in about five minutes, with the amount directly deposited into her account.
Data from the STA supports the initiative's success, showing that in 2024, the number of overseas tourists applying for tax refunds, the sales of tax-refundable goods, and the total refund amount have increased significantly compared to the previous year. Tax authorities are set to further strengthen policy guidance, upgrade system functions, and optimize the refund process, aligning with ongoing efforts to attract overseas visitors and enhance their shopping experience.
This development not only benefits tourists but also reinforces the Chinese mainland's commitment to leveraging digital innovation and efficient service delivery, appealing to a diverse global audience including young global citizens, business professionals, thought leaders, and avid travelers.
Reference(s):
cgtn.com
