China has expanded its instant tax refund policy for overseas tourists nationwide, streamlining the process to spur spending and attract global travelers. The initiative, now active in all provinces, allows international visitors to claim value-added tax (VAT) rebates immediately after purchases instead of waiting until departure. This reform aims to strengthen the growing tourism sector while enhancing China’s appeal as a high-value shopping destination.
Under the updated rules from the State Taxation Administration (STA), tourists can receive rebates on-site through credit card pre-authorization at designated stores. After customs verification upon departure, pre-authorizations are lifted. Eligible visitors must spend between 500 yuan ($58) and 50,000 yuan per store daily and depart within 17 days of purchase. Travelers in Hunan Province, for example, must exit via Changsha or Zhangjiajie airports.
The policy simplifies paperwork: many shopping centers now auto-retrieve transaction details using passports, enabling tourists like Irina, who spoke to China Media Group, to complete refunds in under five minutes. “The refund goes directly into my account. It’s really fast,” she said. Frequent business traveler Marck from Turkey highlighted the immediate 11% VAT rebates as a key incentive for shopping in Zhejiang Province, which hosts over 120 tax-refund stores.
STA data reveals year-on-year growth in 2024: tax refund applicants surged 230%, refundable goods sales rose 120%, and total rebates increased 130%. The administration pledges further system upgrades and process optimizations to support inbound tourism spending.
