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The “instant tax rebate” service for departing visitors in China has experienced a more than ninefold increase in refunded amounts since its introduction last April, fueling greater spending by international travelers, recent data reveals.
The number of users across the country has increased by nearly 13 times over the past year, with both total tax refund transactions and the total refunded sums growing by over nine times, according to the State Taxation Administration.
China’s longstanding tax refund system aims to stimulate domestic consumption. Previously, foreign visitors purchasing eligible goods at participating stores had to claim their 13% value-added tax refunds at departure points when leaving the country.
Recently, select regions have begun piloting an “instant tax rebate” program for travelers. This system allows overseas shoppers to complete a credit card pre-authorization and instantly receive a cash advance based on their anticipated tax refund.
Efforts to streamline the process are underway. For example, Beijing has introduced a city-wide instant refund service that eliminates location limitations, permitting travelers to shop at any tax refund retailer and then select a nearby refund kiosk. Meanwhile, in southwestern Sichuan Province, a QR-code-based “scan and refund” system enables tourists to upload their tax refund applications, identification, and receipts, expediting the refund process.
There are now over 8,000 stores in China offering the instant refund service—a figure more than double the number from a year ago. Some tourists are even using their refunded cash to continue shopping immediately.
The expansion of the instant tax rebate system has boosted inbound tourism and is a key step toward enhancing China’s global business environment. The significant growth in tax refund sales and refunds is attributed not only to policy improvements but also to a sharp rise in international visitors.
Last year, the number of foreign nationals entering China increased by 26.4%, reaching 82 million arrivals, including 30 million who entered under visa waiver programs. In the first quarter alone, 21.3 million international travelers entered or exited the country, marking a 22.3% year-over-year rise.
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