Foreign Tourist Refunds in China Surge 230% in Nine Months

Select Language:

The number of international travelers applying for tax refunds upon leaving China increased by 230 percent during the first nine months of this year compared to the same period last year. This surge is mainly attributed to an increase in tourist numbers and simplified refund procedures. Moreover, the total amount refunded almost doubled within this period, according to recent data from the State Taxation Administration.

China’s departure tax refund program, introduced in 2015 to encourage spending by foreign visitors, allows travelers to reclaim the value-added tax (VAT) on goods purchased at designated refund stores at airports and seaports. The standard VAT rate in China is 13 percent.

During the nine months ending September 30, immigration authorities recorded approximately 510 million entries and exits, reflecting a 14 percent rise from the previous year. Additionally, the number of foreign nationals entering and leaving the country exceeded 20.1 million in the last quarter, representing a 22 percent increase from the previous year.

The country has also piloted a “purchase refund” initiative in select areas, allowing foreign shoppers to receive an advance payment roughly equivalent to the refund amount at participating tax refund stores within regions where the departure refund policy is available. In April, the government expanded this program nationwide through a formal announcement.

Efforts are underway to establish centralized refund points at major shopping districts in cities like Beijing, Shanghai, Chongqing, Chengdu, and Guangzhou. This would allow travelers to shop at multiple stores and receive refunds at a single designated location.

Additionally, cities such as Shanghai and Hangzhou are rolling out new features to streamline the refund process. These include options to apply for refunds via mobile devices and the ability to request refunds with a single click through popular digital payment platforms like Alipay, operated by a leading Chinese fintech company.