China eases tax refund rules for foreign travellers to boost spending

China has announced changes to its departure tax regime that could save travellers’ time and money, reducing checks, expanding the scheme to more stores, and making it easier to claim refunds via a fully paperless system.

Under the new system, applications for refunds on purchases below a value of CN¥10,000 (around €1,265) will no longer be subject to mandatory customs verification, instead undergoing random checks, thus speeding up the departure procedure.

The digitalisation of the system will be rolled out from 1 July 2026. This means customs agents and refund handlers will process all applications and invoices electronically. Instant refunds can be made directly at participating stores if travellers present a passport and a credit card for pre-authorisation. Temporary holds on credit cards will be released as long as consumers complete customs within 28 days from the date of purchase upon leaving mainland China.

The new regime also allows purchasers to make claims in a different location from the place where they bought the goods, allowing travellers to buy items in one city and apply for refunds in another destination. International exhibition centres will also be getting their own tax refund service areas, including the China International Import Expo, the China Import and Export Fair and the China International Consumer Products Expo, to incentivise overseas buyers attending the events.

The “Shopping in China” moves are part of a Chinese drive to boost visitor spending. Officials said in a statement that the changes would make purchases and tax refunds “more convenient, faster and easier” for international consumers.

With up to 13% VAT refundable, the refund scheme is worth applying for as Chinese goods and brands increasingly attract international buyers. Electronics, cultural items, fragrances, and leather products all qualify for refunds, provided the retailer is officially registered under the tax scheme. There are up to 14,000 participating points across the country, according to official numbers, four times as many as there were in 2024. This is only set to grow further as designated international consumption hubs and pilot global retail zones are encouraged to expand.

Overall, the push on international consumer spending is a strategy that is paying off. In 2025, government figures showed that 270,000 overseas visitors applied for tax refunds, quadrupling year-on-year. Meanwhile, inbound consumption went up by 40% and travel service exports rose 50% in 2025. China is also seeking to boost connectivity, making it easier for additional international passengers to fly to China, the official statement said.