Planning a trip to China? Besides breathtaking scenery, historic sites, and vibrant local experiences, there’s one more perk that makes your journey even sweeter—you can get a tax refund on your shopping!
Whether you’re buying traditional crafts in Beijing or luxury goods in Shanghai, here’s everything you need to know to take advantage of China’s departure tax refund policy.
What Is China’s Departure Tax Refund?
The departure tax refund allows overseas travelers to get back a portion of the VAT (value-added tax) they pay when shopping in China. This policy has recently been optimized to make shopping more rewarding and the refund process easier.
Where Can I Shop and Still Get a Tax Refund?
Only purchases made at stores labeled “Tax Free” qualify for a refund. Look for the “Tax Free” sign while shopping—these stores are registered with the program and issue the correct receipts and forms.
China is also expanding the number of tax-free shops, especially in popular tourist zones such as:
- Major shopping malls and pedestrian streets
- Airports and ports
- Tourist attractions and resort areas
- Museums and cultural venues
- Hotels popular with overseas travelers
How Much Do I Need to Spend?
You qualify for a refund if you:
- Spend at least 200 RMB (about $28 USD) in a single “Tax Free” store on the same day
- Provide a valid passport or international travel ID
- Meet other customs and policy requirements
How Much Can I Get Back?
The refund amount is calculated as follows:
Refund = Invoice amount (including VAT) × refund rate – service fee
- Most general goods have a refund rate of 11%, with around 9% in-hand after service charges.
- Cash refunds are now capped at 20,000 RMB (previously 10,000 RMB).
- There is no cap if you choose non-cash refund methods (like credit card refunds).
How Do I Apply for the Refund?
Here’s a step-by-step guide:
- Shop at a “Tax Free” store and keep your receipts.
- Get a Tax Refund Application Form from the store.
- Present your valid passport and tax-refundable items at Customs when leaving China.
- Get your documents and goods verified by Customs.
- Submit the verified documents to the designated tax refund agency.
- Receive your refund via cash or credit card, depending on your choice.
New! “Refund Upon Purchase” Available
This year, China will significantly expand the “refund-upon-purchase” policy for overseas visitors. At designated tax-free stores, travelers can receive their tax refund immediately at the time of purchase by completing a credit card pre-authorization—no need to process it separately at the airport.
Final Tips
- Plan ahead and leave enough time at the airport to complete your tax refund.
- Keep your items unused and ready for inspection at Customs.
- Watch for signs or ask store staff if they support the “Tax Free” or “Refund Upon Purchase” program.
China’s tax refund policy is a great way to save money and enhance your shopping experience. At Big Panda Tours, we’re here to make your trip as smooth and rewarding as possible—from planning must-see spots to helping you make the most of tax-free shopping.
Have questions? Our guides can walk you through the process during your trip. Happy travels and happy shopping in China!
