Tax policy reshaping inbound shopping

The nationwide rollout of China's upgraded departure tax refund policy, centered on "immediate tax refund upon purchase", is reshaping the inbound shopping landscape, with experts saying the shift reflects a fundamental change in service logic designed to improve visitor experience and boost consumption.

The State Taxation Administration said on Monday that the number of overseas visitors claiming departure tax refunds in China jumped 285 percent year-on-year in the first 11 months of the year. Sales of tax-refundable goods and the total value of tax refunds both increased 98.8 percent during the same period.

By the end of November, China had 12,252 tax-refund outlets nationwide, with more than 7,000 offering "immediate tax refund upon purchase", a system rolled out nationally in April.

Wu Liyun, a professor at the China Academy of Culture and Tourism Industry at Beijing International Studies University, said the core significance of the policy upgrade lies in a major shift "from management convenience to visitor experience".

She said that under the previous departure-only refund model, tourists often stood in line at airports and sometimes abandoned refunds due to time pressure.

The "immediate tax refund upon purchase" model, she said, greatly simplifies procedures and gives visitors a tangible sense of gain. "This kind of instant benefit strongly improves the shopping experience and encourages repeat spending," Wu said.

The policy helps promote Chinese products, including time-honored brands and intangible cultural heritage items, by expanding what overseas travelers take home, she added.

Local authorities have rolled out differentiated measures to enhance the system. Beijing has raised the upper limit for "immediate refund "transactions, extended the permissible refund window from 17 to 28 days and enabled citywide one-stop refund services.

In Guangzhou, Guangdong province, tax authorities are piloting a "one form, one sealed bag "mechanism that links each refund claim to a sealed package inspected by Customs, allowing faster clearance. Ten retailers have joined the first trial batch, helping raise the city's tax-refund applications, sales and refund amounts by more than 1.3-fold in the first half of the year.

According to the National Immigration Administration, as of the first three quarters of 2025, China recorded more than 22.82 million inbound foreign visits, including about 7.25 million visa-free arrivals, up 48.3 percent year-on-year.

The gains align with broader improvements in China's inbound consumption environment. A joint report by the World Tourism Alliance, Mastercard and Trip.com found that the nationwide rollout of the "immediate tax refund upon purchase" model has significantly shortened refund times and enhanced the shopping experience.