China Optimizes Tax Refund Policies to Boost Inbound Consumption
April 27,2025
China is taking steps to attract more international visitors by optimizing its departure tax refund policies. The ministry of Commerce, along with six other departments, recently issued a notice aimed at enhancing the shopping experience for overseas tourists and expanding inbound consumption.
Key Policy Changes
- Expanded Store Access: The initiative seeks to increase the number of tax refund stores,particularly in areas frequented by tourists,such as business districts,pedestrian streets,and airports.
- Lower Threshold: The minimum purchase amount for tax refunds has been reduced from 500 yuan to 200 yuan, opening the programme to smaller shops and a wider range of goods [2], [3].
- Improved Services: The cash tax refund limit has been doubled from 10,000 yuan to 20,000 yuan, and efforts are being made to offer diverse payment options, including mobile payment, bank cards, and cash.
Official Statements
sheng Qiuping, vice minister of commerce, emphasized the potential impact of these changes:
Further optimizing the departure tax refund policy will help promote the continued rapid growth of departure tax refund sales and inject consumption into boosting consumption…expand new space.
Sheng Qiuping,Vice Minister of Commerce
Qiuping added that the ministry will work with other departments to implement these policies,improve the quality of tax refund services,and make shopping more convenient for overseas travelers.
Implementation and Expansion
The State Administration of Taxation has already issued an announcement to clarify the procedures for “buy-and-refund” services, encouraging more stores to participate. Xie Wen, director of the Department of Goods and Labor Taxation of the State Administration of Taxation, stated:
Under the thorough effect of the introduction of a series of departure tax refund policies and measures, the advantages of ‘buy and refund’ will be further exerted. In the next step, the tax department will continue to optimize tax services, improve the consumption experience of overseas tourists, and fully release the consumption potential of inbound tourism.
Xie Wen, Director of the Department of Goods and Labor Taxation of the State Administration of Taxation
The Civil Aviation Administration of China is also involved in promoting the policy. xu Qing,director of the Transportation Department,said:
we will cooperate with relevant departments to strive to promote the implementation and optimization of the departure tax refund policy to attract more foreign tourists to enter and consume… We will encourage capable port airports to add departure tax refund stores…to enhance foreign tourists’ awareness of departure tax refund policies and attract more passengers to ‘buy in China’.
Xu Qing,Director of the Transportation Department of the Civil Aviation administration of China
FAQ: Tax Refunds in China
- What is the minimum purchase amount for a tax refund?
- 200 yuan.
- What is the maximum cash refund amount?
- 20,000 yuan.
- Where can I find tax refund stores?
- Look for them in major business districts, tourist attractions, airports, and other areas frequented by tourists.