Tax Refund Policy for Tourists Optimized

To further tap into the potential of inbound tourism, China unveiled new measures on April 27, optimizing the departure tax refund policy and encouraging spending by overseas travelers.

The initiative aims to expand the number and coverage of tax refund stores. Local authorities are encouraged to establish more tax refund outlets in major commercial centers, pedestrian streets, tourist attractions, resorts, cultural venues, airports, ports, and hotels. Notably, international brands, trendy domestic products, time-honored stores, cultural and creative shops, souvenir outlets, gift shops, and specialty stores will be guided to participate. Regions with the necessary conditions are encouraged to develop distinctive tax refund shopping districts.

China will also relax the registration requirements for tax refund stores. Besides businesses with tax credit ratings of A and B, the eligibility will be extended to include those with M. New stores that meet relevant regulations can now quickly register by filing with the tax authorities, who must complete the process within five working days. Additionally, a withdrawal mechanism will be introduced to strengthen the regulation and punishment for violations.

To extend tax refunds, the minimum purchase amount eligible for a refund will be lowered to 200 RMB (approximately 28 USD) per store per day. Stores are urged to expand the range of eligible products, including renowned Chinese brands, smart products, intangible cultural heritage items, artisanal crafts, geographically indicated products, cultural creative goods, specialty products, and sports equipment.

Service improvements are a core focus. China will upgrade its tax refund management system, automate invoice information entry, and enhance verification procedures. The popular "immediate refund at purchase" model will be expanded nationwide, with designated refund service points set up in areas thronged by international tourists. Some regions will introduce product sealing to streamline customs inspections.

Tax refund agencies will also see reforms, with adjusted service fee rates, stricter performance evaluations, and encouragement of cross-regional and cross-institutional collaboration. Partnerships between refund agencies and airport services like currency exchanges are encouraged for greater convenience for travelers.

Payment options for tax refunds will be diversified, raising the cash refund limit to 20,000 RMB and allowing refunds via mobile payments, bank cards, and cash.

Finally, a national tax refund information service platform will be developed, offering travelers easy access to refund store locations, policy guidance, and real-time consultations, while reinforcing efforts to combat fraud and illegal sales.

These comprehensive measures reflect China's commitment to creating a more welcoming and shopper-friendly environment for global visitors.

Source: Science and Technology Daily