China is rolling out a tax refund-upon-purchase policy for tourists across the country, the State Taxation Administration announced on April 5.
Foreign tourists will be able to instantly claim value-added tax (VAT) rebates at tax-free stores after they pre-authorize their credit cards with a guaranteed sum. The refunds can then be used to buy more in real time. When they leave China, customs will conduct checks before releasing the credit card guarantee.
Foreign tourists will see the benefits of the refund policy while still in the country, and exit procedures will be expedited, compared to the former refund-on-departure process.
The policy has been piloted in municipalities and provinces, including Shanghai, Beijing and Shenzhen, as well as Guangdong, Sichuan and Zhejiang.
Experts said that the new policy, plus the visa-free transit policy, is helpful to build a friendly, efficient and convenient tourism environment for China and will further stimulate foreign tourists’ consumption which will also promote economic development. Official data on April 15 showed that since China extended the visa-free transit to 240 hours last December, the country has seen around 9.2 million foreign entries by March 31, 40.2 percent year-on-year growth, with 71.3 percent enjoying the visa-free transit policy.
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