Foreign visitors impressed by easier sales tax refunds

Simplicity of use

Under the new refund-upon-purchase model, tourists can claim value-added tax rebates at designated retail stores right after shopping, which means an instant discount and free cash or digital renminbi.

For instance, if a foreign tourist buys a Huawei Mate XT with an original price of 23,999 yuan ($3,299) including tax, he or she can receive an in-store refund of about $360.

The amount is enough for someone to take a high-speed train from Beijing to Shanghai, plus a one-night luxury hotel stay.

To get the immediate tax refund, a foreign tourist must buy eligible goods at stores displaying "Buy and Refund" signs then present the VAT invoice, tax refund application form, and their passports at the store's refund counter.

The entire time for the process can be as short as a few minutes.

When departing the country the visitor needs to submit the original tax refund form to customs officials for stamping, and then present their receipts to the tax refund counter.

Since being piloted in Shanghai, Beijing, and other places, the new mechanism has been well received by a large number of overseas travelers, with a significant boost to consumption, experts said.

The scale of tax refunds processed through the refund-upon-purchase tax policy in 10 pilot areas increased 22-fold year-on-year in 2024, said Xie Wen, an official with the State Taxation Administration, at a news conference on Sunday.

The increase in the pilot areas is 18 times the national average growth rate of outbound tax refunds, Xie added.

In Beijing, the list of stores offering instant tax refunds to foreign tourists is not restricted to large shopping centers like Beijing SKP.

To date, there are 16 stores in the capital offering refund-upon-purchase services, with many of them also equipped with AI intelligent translation screens. Among them are well-known time-honored brands such as TCM pharmacy Tongrentang and the silk and cloth store Ruifuxiang.

Attracting visitors

China introduced the departure tax refund policy for overseas travelers in 2015.

Last year, sales of eligible goods rose 120 percent year-on-year, while the total amount of tax refunded increased by 130 percent, according to official data.

Inbound tourists spent a total of $94.2 billion last year, up 77.8 percent from a year earlier, Xinhua News Agency reported.

At the MixC malls in Shenzhen, Guangdong province, prominent signage and clear instructions for overseas shoppers seeking departure tax refunds are now a common sight in stores like Sundan and DJI.

At DJI's drone store, overseas tourists often arrive in groups to purchase drones and handheld cameras. "Besides our own promotions, Hong Kong-based influencers come to visit and post videos showcasing the departure tax refund process here," said a staff member, adding that nearly 60 percent of the store's total sales come from Hong Kong consumers.

The number of stores offering departure tax refunds at Shenzhen's MixC malls has risen by 30 percent year-on-year in 2025, according to Liang Jingyi, head of departure tax refund operations at Shenzhen MixC.

To further streamline the departure tax refund process for overseas travelers, Shenzhen on Sunday launched a new pilot program featuring a "one order, one bag" model at three designated malls.

Under the scheme, purchases and departure tax refund forms are packed together in sealed bags, enabling customs officials to quickly verify the packaging's authenticity and cut inspection time by more than 50 percent.

In Shanghai, Stephanie, a traveler from Australia, was discovering her first trip to the city was not just a tourism experience but also a shopping bonanza.

"I enjoyed the sights and the shopping experience here," she said, adding that she picked up souvenirs and clothes, including Chinese brands that are becoming increasingly popular among Australians.

What surprised her most was the departure tax refund policy, which she believes makes shopping even more appealing.

"The departure tax refund policy is totally new to me, and it is very helpful," she told Xinhua.

Sheng, from the commerce ministry, said in 2024, spending by overseas visitors accounted for about 0.5 percent of the country's GDP, compared with one to three percent in major economies. "China's inbound consumption holds great growth potential," he said.