Upgraded tax refund policies make shopping in China easier for global visitors

Foreign tourists buy cultural products in a store in Beijing, capital of China. (Photo/Hu Qingming)

China has rolled out a new round of upgrades to its departure tax refund policy, delivering a more seamless, hassle-free shopping experience for foreign visitors.

As of July 1, key measures under version 2.0 of China's departure tax refund policy, including a fully paperless refund process and random inspections for low-value tax refund claims, have officially taken effect, further streamlining tax refund procedures and enhancing the overall shopping experience for overseas visitors.

At the departure tax refund counter in Terminal 3 of Beijing Capital International Airport on July 1, Romanian traveler David completed all refund formalities within minutes by simply presenting a QR code for departure tax refund.

"Previously, I had to keep paper invoices and tax refund forms throughout my trip. They took time to issue, and I was always worried about losing them," he said.

During his latest stay in Beijing this time, David purchased a wristwatch. At the departure tax refund store, he scanned a QR code to generate an electronic tax refund form. Upon departure, he simply presented the same QR code for customs verification at the airport. Throughout the entire process, a single QR code handled everything, making the procedure both convenient and hassle-free.

Previously, overseas travelers often worried about losing tax refund forms, illegible receipts or forgetting to obtain the required customs stamp. Under the new system, travelers only need to scan a QR code using their mobile phone browser after entering China and submit their identity information once. They will then receive a personal QR code for departure tax refund that can be used nationwide.

The QR code can be scanned at any participating tax refund store or departure port across the country. Travelers can also use it to access electronic tax refund forms, electronic invoices and real-time updates on their refund applications, making the entire process fully digital, transparent and traceable.

The paperless system has also transformed operations for participating retailers.

"During peak travel seasons, customers often had to queue just to obtain paper tax refund forms," said a staff member at a Lawson tax refund store in Beijing Capital International Airport.

"Now we simply scan customers' QR codes through the online system to collect identity information electronically, automatically generate the electronic refund application and send it directly to customers' phones. No manual filling, no printing, no waiting around. Shoppers spend far less time queuing, and we no longer need to install extra printing equipment," the staff member explained.

Another major policy upgrade is the introduction of a random inspection system for low-value tax refund claims.

On the morning of July 1, several international travelers were waiting in an orderly manner at a departure tax refund service point at Futian Port in Shenzhen, south China's Guangdong province. Yang Liqin, a traveler from China's Hong Kong Special Administrative Region who frequently commutes between Shenzhen and Hong Kong, completed his tax refund smoothly after purchasing a smart gimbal camera. He received a refund of about 530 yuan ($77.98).

"I wasn't picked for an on-site inspection today, so the entire process only took a few minutes," Yang said. "The new policy makes it even easier for us to buy high-quality Chinese products."

Foreign tourists try smart phones at a flagship store of Chinese tech giant Huawei in Nanjing Pedestrian Road, Shanghai, east China. (Photo/Li Baoyang)

Under the new policy, effective July 1, tax refund claims involving purchases worth less than 10,000 yuan are subject to physical inspection only on a random basis. Refund claims of 10,000 yuan or more continue to undergo mandatory physical inspection item by item.

"The random inspection system applies a risk-based approach to optimize tax refund procedures," explained Sun Yiming, deputy head of the baggage supervision section under the postal and express supervision division of Shenzhen Customs.

"Most tourists claiming relatively small refunds no longer need to wait in line for physical inspection just to receive refunds worth a few hundred or even a few dozen yuan. Those not selected can proceed quickly to the next step, while dedicated staff assist travelers selected for inspection, ensuring an orderly and efficient process that significantly improves the tax refund experience," Sun told People's Daily.

These policy upgrades have made shopping in China far more appealing to overseas visitors.

After visiting popular attractions in Dalian, northeast China's Liaoning province, Russian tourist Marina was drawn to a wide variety of locally made products, including gift boxes of sea cucumbers, handcrafted mother-of-pearl shell carvings and spotted seal plush toys.

"The refund process was very straightforward, and the money was credited immediately," she said. "Now I'd like to buy more cultural and creative products as gifts for my family and friends."

With the steady rollout of the departure tax refund policy, the number of tax-refund stores nationwide keeps expanding alongside a richer range of goods. Diverse merchandise delivers a more satisfying shopping experience for international visitors, and streamlined tax refund services also bring businesses a stable flow of foreign shoppers.

"Our customer traffic has doubled since we became an 'instant tax refund' store in April," said the manager of an Adidas Originals store at a mall in southwest China's Chongqing municipality. Sales through the instant tax refund program now account for about six percent of the store's total revenue.

Since the beginning of this year, Chongqing has continued upgrading its departure tax refund services, adding 73 participating stores and bringing the citywide total to 363.

"We have also established centralized 'instant tax refund' service points in major shopping districts popular with international visitors, including Jiefangbei, Chaotianmen, Guanyinqiao and the MixC," said Li Lin, deputy director of the export tax refund service and administration bureau of Chongqing's tax bureau.

"In addition, Chongqing is participating in pilot programs with several provinces to enable mutual recognition of instant tax refunds across different regions. Going forward, we will continue to expand the number of participating merchants, enrich the range of featured products and create more convenient tax refund scenarios for overseas visitors," Li added.