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China refines departure tax refund policy to encourage inbound consumption

Xinhua | Updated: 2025-04-27 12:00
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BEIJING - China unveiled a set of measures on Sunday to further optimize its departure tax refund policy to meet overseas tourists' needs better and expand inbound consumption.

The minimum purchase threshold for departure tax refunds has been lowered, allowing overseas travelers to apply for a refund if they spend at least 200 yuan (about $27.75) at the same store on the same day and meet other relevant requirements, according to a circular jointly issued by the Ministry of Commerce and five other government departments.

While ensuring proper risk management, refunds will be made available through multiple channels, including mobile payments, bank cards and cash, to better accommodate the diverse payment preferences of overseas travelers. The upper limit for cash refund has been raised to 20,000 yuan.

The circular also outlines steps to expand the number of departure tax refund stores, enrich the supply of related goods and improve related services.

More departure tax refund stores will be set up in major shopping areas, pedestrian streets, tourist sites, resorts, cultural venues, airports, passenger ports and hotels, according to the circular.

Departure tax refund stores are encouraged to broaden product offerings to include time-honored brands, renowned Chinese consumer goods, smart devices, intangible cultural heritage items, crafts and specialty products, among others.

A series of activities to promote shopping in China will be launched to support local efforts to cultivate and promote high-quality signature products, such as "city gifts" and "must-buy" items, in departure tax refund stores.

Meanwhile, the regulations regarding departure tax refund have been revised to optimize related services and streamline the refund process to help overseas travelers more easily benefit from departure tax refund policies, according to the country's taxation authorities.

Earlier this month, China announced a nationwide shift from a refund-upon-departure model to a refund-upon-purchase model for departure tax refund, enabling foreign visitors to instantly claim value-added tax rebates at tax-free stores across the country.

"Providing overseas travelers with a greater variety of shopping options and improved, more convenient tax refund services will help stimulate inbound consumption and support high-standard opening up and economic growth," said Chen Binkai, vice-president of the Central University of Finance and Economics.

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