By Wang Guan, People’s Daily
WhenAzim, a tourist from Pakistan, visited Guangzhou, south China’s Guangdong province, with his friends, he was impressed not only by the iconic Canton Tower and other city landmarks, but also by how easy it was to shop and save.
“With the 240-hour visa-free transit policy, traveling to Guangzhou has become incredibly convenient,”he said.
Beyond sightseeing, Azim and his friends also made their way to the bustling Tianhe Road Business Circle for shopping.
“I didn’t expect to receive a tax refund on a pair of shoes, and to get the money back right there in the store!” At a Chinese sportswear shop, Azim purchased a pair of sneakers priced at around 300 yuan ($41.79). With assistance from store staff, he uploaded his passport details via an app, linked his credit card, and submitted the tax refund form and receipt. Moments later, he received a refund of over 30 yuan.
Recently, China unveiled a set of measures to further optimize its departure tax refund policy to meet overseas tourists’ needs better and expand inbound consumption.
The minimum purchase threshold for departure tax refunds has been lowered, allowing overseas travelers to apply for a refund if they spend at least 200 yuan at the same store on the same day and meet other relevant requirements, according to a circular jointly issued by the Chinese Ministry of Commerce and five other government departments.
These new policies have already been implemented in multiple regions, generating enthusiasm for consumption among foreign visitors.
During the recent May Day holiday, China UnionPay and NetsUnion Clearing Corporation reported that the number of payments made by overseas visitors to China jumped 244.86 percent year on year, with the total value of these transactions rising 128.04 percent.
“These measures have encouraged overseas travelers to buy lower-priced goods like local specialties, cultural and creative products, and souvenirs, expanding the scope of eligible purchases and promoting small-ticket consumption and shopping frequency,” explained Wang Tingting, associate professor with the Economic Law School of Southwest University of Political Science and Law.
At the same time, the upper limit for cash refund has been raised to 20,000 yuan, providing travelers with greater liquidity. While ensuring proper risk management, refunds will be made available through multiple channels, including mobile payments, bank cards and cash, to better accommodate the diverse payment preferences of overseas travelers.
In early April, China’s State Taxation Administration rolled out a “refund-upon-purchase” policy. Under the new policy, foreign visitors can instantly claim value-added tax (VAT) rebates at tax-free stores, enabling them to reuse the refunded amount in real time for further shopping. Previously, VAT rebates were only available for withdrawal upon departure.
“Lowering the refund threshold stimulates small and mid-sized purchases, while the refund-upon-purchase policy shortens the refund cycle. This creates a virtuous loop of ‘spend-refund-spend again,’ encouraging repeatedconsumption and delivering tangible benefits to overseas travelers,” said Wang.
At a store in southwest China’s Chongqing municipality, a tourist from the Philippines purchased a smartphone manufactured by Chinese tech giant Huawei. “I’ve always been interested in tech products, and Chinese electronics are both high-quality and very popular back home,” he said.
From iconic Chinese goods like tea, silk, and traditional clothing to high-tech items like smartwatches, cameras, and smartphones, the growing diversity of products is attracting more international shoppers and expanding the global presence of Chinese brands.
The Sundan store MixC shopping mall in Shenzhen, Guangdong province, which sells home appliances, is among the first in the city eligible for departure tax refund. “In the first four months of this year, we saw a 500 percent year-on-year increase in tax refund transactions. Thanks to continuous improvement of the departure tax refund policy, our overseas customers have benefited a lot,” said store manager Wang Yali.
In the first quarter of this year, departure tax refunds issued in Shenzhen grew by nearly 150 percent compared to the same period last year, accounting for 40 percent of the city’s full-year total in 2024.
“It was incredibly fast!” said a tourist from Singapore, who bought a 200-yuan UV-protective jacket at the Parkson Shopping Center on Chunxi Road in Chengdu, southwest China’s Sichuan province.
“After a customer pays, we issue a value-added tax invoice, then log into the departure tax refund information system. The invoice information is automatically populated, so there’s no need for manual entry. After the details are confirmed, we print out the refund application form,” explained Xiao Chunmei, a store manager at the Parkson Shopping Center. “The upgraded system has made things easier for both shoppers and retailers.”
Under the refund-upon-purchase model, overseas travelers can receive their refunds during the shopping process. Enhanced tax refund management systems have acceleratedprocessing and reduced wait times. Every step — from payment and invoicing to refund application and verification — has become more efficient and convenient.
According to China UnionPay, three tax refund options are currently available: via UnionPay card, through the UnionPay mobile app, or by manually entering card information. These services are available at both airports and in-city retail outlets participating in the refund-upon-purchase program. Refunds can be credited directly to UnionPay cards issued overseas, often within seconds.
In addition, China UnionPay is working to expand QR code-based tax refund services byenabling more of its international wallet partners to offer the option, further simplifying the process for global users.
