China rolls out new tax refund measures to boost inbound spending

China is expanding its tax refund program for overseas travelers as part of efforts to boost inbound spending.

Photo from Jiemian News

Photo from Jiemian News

The Ministry of Commerce and several other government agencies on Monday unveiled a new package of measures aimed at making tax refunds faster, more digitalized and more accessible for foreign visitors.

The updated policy, described by Vice Commerce Minister SHENG Qiuping as version "2.0" of China's departure tax refund system, includes expanding the number of eligible tax refund stores, streamlining customs inspections and promoting paperless processing.

China has stepped up efforts over the past year to attract overseas tourists and shoppers through expanded visa-free entry policies, easier mobile payment services and the "Shop in China" campaign.

Official data showed sales involving departure tax refunds nearly doubled in 2025 from a year earlier, while inbound consumption and travel service exports rose nearly 40% and 50%, respectively.

The latest measures also expand the "refund upon purchase" model, allowing travelers to receive tax refunds instantly after shopping rather than waiting until departure. Travelers will now be able to complete refund procedures at ports outside the city where purchases were made.

Starting July 1, 2026, customs authorities will conduct random inspections for refund applications involving purchases below 10,000 yuan (US$1,461), while higher-value applications will continue to face full inspections. Authorities said the change is expected to shorten waiting times at airports and ports.

Shanghai, Beijing, Guangzhou, Tianjin and Chongqing — China's five international consumption center cities — accounted for two-thirds of national tax refund sales last year, according to the commerce ministry.

Shanghai plans to introduce self-service tax refund query and verification machines at Pudong and Hongqiao airports, while Shenzhen will expand refund eligibility for locally made products such as drones, smartphones and smart wearables.