Lifestyle

China expands tax refund system to boost spending by foreign tourists

Photo: Shutterstock, photo editor: Serikzhan Kovlanbayev

China has decided to make shopping for foreign tourists more convenient, with authorities updating the country’s tax refund system, China Daily reported.

The update will make it easier and faster to receive tax refunds for purchases without paperwork.

A key aspect of the update is the expansion of tax refund stores, with authorities encouraging wider coverage in major shopping districts, tourist attractions and ports of entry.

Important amendments include simplifying purchase checks. Starting July 1, goods valued at up to 10,000 yuan will be subject to random checks rather than inspection of every purchase, which is expected to significantly reduce waiting times and queues at airports and border crossings.

In addition, tourists will be able to receive refunds promptly at the point of sale, without waiting until departure. China has been actively developing the instant tax refund system. Authorities believe that tourists tend to spend more after receiving instant refunds.

The process is pledged to be almost completely digitalized. Customs and refund services will be able to verify receipts online without paper documents. The period for completing refund verification and departure after receiving an instant tax refund will also be standardized nationwide at 28 days.

Chinese authorities expect the updated system to attract even more tourists by positioning shopping as one of the main selling points of travel to the country. Notably, following the easing of visa requirements in 2023, tourist flows from Kazakhstan to China have continued to grow, so the updated system is expected to further facilitate travel and spending.