China Unveils Upgraded Departure Tax Refund Policies to Boost Inbound Tourism and Consumption

Six Chinese central government departments have jointly issued an upgraded policy package introducing eight new measures to optimise departure tax refund services and expand inbound consumption. Building on the initial version launched in April last year, the 2.0 iteration further refines overseas visitor shopping experiences, injecting new momentum into the booming inbound tourism and cross-border consumption market amid China’s high-standard opening-up progress.

Departure tax refund is a globally adopted incentive mechanism that refunds value-added tax for eligible goods purchased by overseas visitors before they leave the country. Supported by continuous improvements in visa facilitation, cross-border payment services and standardised tourism services, China’s inbound tourism and consumption sectors have maintained robust growth momentum. Official statistics show that China received 35.17 million inbound foreign tourists in 2025, marking a year-on-year increase of 30.5 per cent. Total consumption expenditure by inbound tourists rose 39.2 per cent year on year, while national departure tax refund sales nearly doubled compared with the previous year. Tourism and shopping experiences in China are gaining growing popularity among global travellers.

The upgraded policy focuses on two core dimensions of coverage expansion and efficiency optimisation to deliver tangible upgrades for overseas consumers. The new guideline promotes full coverage of tax refund stores in key business districts, scenic spots, trading markets and ports with dense overseas visitor flows across regions. The comprehensive layout of refund outlets enriches accessible consumption scenarios and diversified shopping options, effectively stimulating inbound consumption willingness.

Major procedural upgrades will take effect on 1 July this year, ushering in a paperless and standardised new era for departure tax refund processing. Customs and authorised agencies can automatically retrieve refund application and invoice information by verifying visitor identities, eliminating cumbersome paper documentation. Nationwide mutual recognition for instant tax refund services is fully implemented, with a unified 28-day departure deadline to resolve long-standing obstacles for travellers who shop across cities and depart from different ports. For small-value refund applications below 10,000 yuan, random sampling inspection will replace full manual verification, greatly streamlining processing procedures and shortening waiting time.

The iterative optimisation of departure tax refund mechanisms serves as a vital bond connecting global visitors and China’s vast consumer market. Inbound tourism and consumption act as a crucial window showcasing China’s development vitality and cultural charm, while facilitating domestic and international dual circulation. The upgraded policy package demonstrates China’s inclusive and open attitude towards global travellers. Combined with maturing visa convenience and cross-border payment systems, the refined tax refund framework strengthens the competitive edge of China’s inbound consumption market.

Structural changes are taking place in China’s inbound consumption landscape. Overseas visitors are shifting from pure commodity shopping to in-depth local lifestyle and cultural experience pursuits. Market participants and competent authorities are capturing evolving consumption demands to innovate diversified products and immersive service scenarios. Continuous optimisation of policy services and consumption supply will further energise China’s cultural and tourism industry, sustaining high-quality development of inbound business amid ongoing high-standard opening-up.