China’s departure tax refund policy allows eligible international visitors to reclaim part of the value-added tax (VAT) paid on qualifying purchases before leaving mainland China.
For travel agencies and partners, understanding the policy helps provide accurate pre-departure information, especially for clients interested in shopping during their trip. The policy covers refund rates, eligible purchases, minimum spending requirements, payment methods, and the application process.
What Are China’s Tax Refund Rates?
China currently offers two official departure tax refund rates: 11% and 8%.
The applicable rate depends on the VAT category of the purchased goods rather than the purchase amount.
Goods Eligible for the 11% Refund Rate
The 11% refund generally applies to goods that are subject to a 13% VAT rate, including many products commonly purchased by international visitors. The applicable refund rate is determined by the VAT category shown on the retailer’s tax refund documents.
Goods Eligible for the 8% Refund Rate
The 8% refund generally applies to goods originally subject to a 9% VAT rate.
The VAT category is determined by the retailer and reflected in the official tax refund documents.
Why Is the Actual Refund Lower Than the Published Rate?
The published refund rate is not the same as the amount travelers actually receive.
Tax refund agencies usually deduct a service fee before making the payment. As a result, the amount refunded is lower than the official rate. In practice, an 11% refund rate usually means travelers receive about 9%, while an 8% refund rate usually means they receive about 6%.
Quoted from Shanghai Municipal Tax Service, State Taxation Administration, the refund amount is calculated as: Invoice amount (including VAT) × [Refund rate (11% or 8%) – 2% handling fee charged by the tax refund agency]. The final refund amount is subject to Customs verification.
Travel partners should explain this difference to clients before departure to avoid confusion during the refund process.
What Is the Minimum Purchase Amount?
To qualify for a departure tax refund, travelers must spend at least RMB 200 in a single purchase at the same designated tax refund store on the same day.
The policy is available not only for luxury purchase but also for everyday shopping, including:
- Tea
- Silk products
- Local handicrafts
- Cultural gifts
- Souvenirs
- Cosmetics
- Local specialty products
Purchases made at retailers that are not registered as tax refund stores are not eligible.
Who Can Apply for a Tax Refund?
China’s departure tax refund policy generally applies to:
- Foreign passport holders
- Visitors from Hong Kong
- Visitors from Macao
- Visitors from Taiwan
Eligible visitors must also satisfy several conditions.
In general, they should:
- stay in mainland China for no more than 183 consecutive days before departure;
- purchase eligible goods from designated tax refund retailers;
- take the purchased goods out of mainland China themselves;
- complete customs verification before leaving.
If these requirements are not met, the refund application may not be approved on departure of China.
How Is the Refund Paid?
China provides two refund payment methods: cash and bank transfer.
For refund amounts of RMB 20,000 or below, travelers may choose either payment method.
For refund amounts exceeding RMB 20,000, payment is normally paid by bank transfer only.
The available payment options may vary slightly by departure port and tax refund agency, so travelers should confirm the payment method before completing the refund procedure.
How Do Foreign Visitors Apply for the Refund?
Although individual airports may have different layouts, the general process is similar throughout China.
Step 1 – Shop at a Designated Tax Refund Store
The traveler purchases eligible goods from a store with the official tax refund sign.
A store with the tax refund sign in Chongqing
Step 2 – Collect the Required Documents
The retailer issues:
- VAT invoice
- Tax refund application form
Both documents should be kept carefully until departure.
Step 3 – Present Goods to Customs
Before leaving mainland China, travelers present:
- Passport or travel document
- Tax-refundable goods have not been used or consumed
- VAT invoice
- Tax refund application form
Customs officers may inspect the goods to confirm that they are being taken out of China. From 1 July 2026, Customs will randomly select a proportion of refund applications below RMB 10,000 for physical inspection. Applications of RMB 10,000 or more will continue to be physically inspected in every case.
Step 4 – Receive the Refund
After Customs approval, travelers complete the refund procedure with the tax refund agency.
According to State Taxation Administration, from 1 July 2026, Customs and tax refund agencies will support paperless processing, allowing refund application forms and sales invoices to be verified online.
Because customs inspection and refund processing require additional time, travelers should arrive at the airport earlier than usual.
What Is the “Buy and Refund Immediately” Service?
To improve the shopping experience for overseas visitors, some cities—including Beijing and Shanghai—offer a “Buy and Refund Immediately” service.
Under this arrangement, eligible travelers may receive the refund on-site at the stores immediately after completing their purchase, signing an agreement, and completing a credit card pre-authorization.
However, this does not remove the requirement for customs verification. Travelers must still comply with the necessary departure procedures before leaving mainland China.
From 1 July 2026, travelers using this service may complete the final departure procedures at another participating departure port under a cross-city recognition policy. The departure period for the service will also be standardized to 28 days nationwide.
An overseas traveler are handing “Buy and Refund Immediately” procedures at the centralized refund point in China World Mall.
Practical Advice for Travel Partners and Agencies
To help clients use China’s departure tax refund service smoothly, it is better to include the following reminders in their pre-departure information:
- Shop only at designated tax refund stores.
- Keep invoices and tax refund documents together.
- Retain purchased goods in their original condition until departure if customs inspection is required.
- Allow additional time at the airport for customs procedures.
- Understand that the refund received is generally lower than the published refund rate because of service fees.
- Verify whether the departure airport provides tax refund services and where the refund counter is located.
These simple reminders can make the refund process smoother for travelers.
Why This Policy Matters for International Travel Professionals
Understanding China’s tax refund policy helps greatly for clients when planning a trip to China.
So to be informative on tax refund policy can help clients understand where to shop, what documents to keep, and how much time to allow for Customs verification before departure. It also reduces the risk of missing a tax refund at the airport.
By keeping up to date with these China travel information, you are able to provide practical travel advice and ensure your clients are well prepared for a wonderful China experience.
