Shop and sightsee together: China’s tax refund policy for shopping launches nationwide — travelers can get an 11% refund

▲ Diagram of Shanghai Pudong International Airport Duty-Free Shop (Image / from the official website of Shanghai Pudong International Airport)

Travel Center / Comprehensive Report

To attract more visitors to China, the Ministry of Finance announced on the 16th that it has decided to implement the “Tax Refund Policy for Shopping by Overseas Travelers” in all eligible regions across the country. Foreign travelers (including those from Taiwan, Hong Kong, and Macau) who have resided in China for less than 183 days can receive an 11% VAT refund on purchases made at duty-free shops when leaving the country.

The “Tax Refund Policy for Shopping by Overseas Travelers” refers to a policy where overseas travelers can get a VAT refund on eligible items purchased at designated tax refund stores when leaving the country. As early as January 1, 2011, China began piloting this tax refund policy in Hainan.

Xinhua News Agency quoted analysts as saying that the full launch of the tax refund policy will effectively boost inbound tourism in China, stimulate domestic consumption, and inject momentum into China’s economic growth. (News source: CNA)