On April 27, the Ministry of Commerce announced new measures aimed at stimulating consumption by foreign visitors through enhancements to China’s departure tax refund program. This initiative involves collaboration with five other government departments and introduces several key reforms.
Lowered Threshold for Tax Refunds
One of the most significant changes is the reduction in the minimum purchase requirement for tax refunds. Foreign tourists can now apply for refunds when purchasing eligible goods totaling at least 200 yuan (about USD 28) from the same store on the same day, provided they meet all other criteria.
Comprehensive Policy Optimization
The newly released notice outlines eight specific measures within three primary categories:
- Expanding Tax Refund Store Network
- Diversifying Eligible Products
- Improving Refund Services
Expanding Store Coverage
Authorities will work to increase the availability of tax refund services by establishing more participating stores in key locations including major shopping districts, pedestrian streets, tourist attractions, resorts, cultural and museum venues, airports, passenger ports, and hotels. The eligibility criteria for stores have also been relaxed – businesses with M tax credit ratings can now apply alongside those with A and B ratings, provided they meet other requirements.
Broadening Product Offerings
Tax refund stores are being encouraged to expand their selections to better cater to international visitors’ preferences. This includes promoting traditional Chinese brands, well-known domestic products, smart devices, cultural heritage items, arts and crafts, geographical indication products, cultural and creative goods, specialty items, and sports equipment. The government also plans “Shopping in China” campaigns to showcase high-quality signature products like “City Souvenirs” and “Must-Buy Must-Bring” items.
Upgrading Refund Payment Options
To better serve foreign travelers, the cash refund limit has been increased to 20,000 yuan (approximately USD 2,760). Refund agencies are encouraged to collaborate with payment service providers and clearing institutions to offer multiple refund methods including mobile payments, bank cards, and cash, while maintaining effective risk management.
These comprehensive measures aim to create a more attractive shopping environment for international visitors and stimulate consumption in China’s tourism and retail sectors.
