23 April China is offering tourists instant tax refunds!
China has recently made a significant stride in attracting international tourists by introducing an instant Value Added Tax (VAT) refund on purchases. This new policy allows foreign visitors to immediately receive their tax refund at the point of sale in shops, rather than having to wait for the refund at airports upon departure.
From 8 April 2025, China has expanded its pilot project for instant VAT refunds to a national level. Foreign tourists can now claim a VAT refund of 11% immediately at the point of purchase in authorised stores, without the need for additional paperwork or waiting at the airport. All you need to do is show your passport and sign a confirmation, and the refund is paid out immediately in cash or to a card.
How does it work?
- Who has the right? Foreign nationals residing in China for less than 183 days.
- Where? In authorised stores that are part of the tax refund scheme.
- How much? Minimum purchase from 500 to 50,000 yuan per shop per day.
- How? Passport presentation when purchasing, automatic refund calculation and on-the-spot payout.
Why is this important?
This initiative comes at a time when US tariffs have increased the prices of Chinese products in the US. In response, China is encouraging foreign tourists, particularly Americans, to come and buy directly in China, where they can achieve significant savings. For example, by purchasing goods worth 10,000 yuan, a tourist can get a refund of 1,100 yuan, which is approximately $150.
This policy is part of China's broader strategy to boost tourism and consumption. With relaxed visa regimes and improved services for tourists, China is seeing a significant increase in arrivals of foreign visitors. In the first quarter of 2025, 17.44 million border crossings by foreign nationals were recorded, a 33.41 per cent increase compared with the same period last year.
With this policy, China has shown how smart moves can boost tourism and consumption, despite global trade challenges. For international tourists, especially those from countries affected by tariffs, this presents an opportunity to save money and enjoy Chinese culture and products.
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