“China Travel” becomes even more convenient.
The State Taxation Administration recently issued an announcement to expand the “instant tax refund upon purchase” service for departing travelers from pilot areas to the entire country. This means that foreign tourists can now enjoy on-the-spot tax refunds for their shopping nationwide and can continue to use the refunded amount for further spending within China.
The “instant tax refund upon purchase” is a streamlined measure within the departure tax refund policy. Simply put, when foreign tourists buy tax-refundable goods at designated “instant refund” stores in regions where the policy is implemented, they only need to provide a credit card pre-authorization as a guarantee to receive the tax refund on the spot.
On December 4, 2024, a tourist from Poland takes a photo at Yuyuan Bazaar in Shanghai. As the list of visa-free countries to China continues to expand and improvements are made in areas such as payment, language, and transportation, traveling in China is becoming increasingly convenient—attracting a growing number of international tourists.
(Xinhua News Agency, photo by Chen Haoming)
This initiative was previously piloted in regions such as Shanghai, Beijing, Guangdong, Sichuan, Zhejiang, and Shenzhen. According to data from the State Taxation Administration, in 2024, the number of foreign tourists claiming departure tax refunds, the sales of tax-refundable goods, and the total amount of tax refunded increased by 2.3 times, 1.2 times, and 1.3 times year-on-year, respectively.
A relevant official from the Goods and Services Tax Department of the State Taxation Administration stated that the biggest highlight of the “instant tax refund upon purchase” is that it brings the tax refund process forward—allowing foreign tourists to receive their refunds during the shopping stage. This enables them to more directly experience the benefits of the refund and encourages additional spending after receiving the refund on-site.
Unilateral visa-free entry for citizens of 38 countries, extended 240-hour visa-free transit for travelers from 54 countries, and significantly improved payment convenience for foreigners visiting China—all of these factors are helping make “China Travel” a trending phrase globally, attracting a large number of international tourists to China. The nationwide rollout of the “instant tax refund upon purchase” policy comes at just the right time.
According to data from the State Administration of Foreign Exchange, China’s travel income and expenditure in 2024 amounted to $290.4 billion, a 32% increase compared to 2023 and approximately the same as in 2019. Among this, travel income reached $39.7 billion, showing a 59% growth.
Experts believe that the nationwide expansion of this service measure will further stimulate the consumption power of foreign tourists and amplify the economic benefits of tourism for international visitors.
This announcement clearly outlines the main details, procedures, and implementation timeline for the “instant tax refund upon purchase” service. It also specifies that tax refund stores wishing to offer the “instant tax refund upon purchase” service can become such stores after reaching an agreement with local tax refund agencies.
Currently, tax authorities in several regions have organized training and guidance for local merchants on setting up “instant tax refund upon purchase” stores, as well as on the tax refund process and related matters. This is helping to accelerate the implementation and successful rollout of the “instant tax refund upon purchase” service.
Source: Xinhua News Agency
