China’s “Buy Now, Refund Now” Policy Boosts Inbound Consumption After One Year

To implement the decision-making arrangements of the Party Central Committee and the State Council on promoting consumption, China fully rolled out the “Buy Now, Refund Now” tax refund service for overseas tourists nationwide in April 2025. The measure, designed to enhance convenience and optimize consumption experience for foreign visitors, has been smoothly implemented for a full year, Xinhua News Agency reported.

Over the past year, the policy has effectively stimulated inbound consumption vitality. Data from the State Taxation Administration shows that the number of tax refund applicants nationwide increased by 12.96 times year-on-year, while tax refund sales and the total amount of tax refunds both rose by 9.35 times, achieving rapid growth in business scale.

“Buy Now, Refund Now” allows overseas tourists to apply for RMB tax refunds equal to the refund amount on the spot at designated stores after signing an agreement and completing credit card pre-authorization. With vigorous promotion by tax authorities and relevant departments, over 8,000 tax refund stores across the country now offer this service, representing an increase of more than 100% compared with the launch stage one year ago, China Economic Net stated.

Under the overall guidance of the State Taxation Administration, local tax authorities have continuously upgraded the service. Beijing launched a city-wide universal handling service to break spatial restrictions, while Sichuan introduced a “Scan and Refund” QR code service for quick application. Shenzhen expanded its electronic refund system, adding WeChat Hong Kong Wallet real-time transfer and digital RMB hard wallet options, which enable tourists to use refunds directly for secondary consumption, China Government Network noted.

Fan Yong, Dean of the School of Public Finance and Taxation at Central University of Finance and Economics, said the policy’s implementation has effectively boosted inbound consumption and served as an important achievement in optimizing China’s international business environment, helping local brands enter the global market.

A responsible person from the relevant department of the State Taxation Administration stated that tax authorities will further refine the policy, expand service scenarios and optimize procedures to better meet overseas tourists’ needs, providing strong support for expanding inbound consumption and high-level opening-up.