China boosts shopping tourism with instant VAT refunds

05-04-25

Since April 2025, China has implemented an innovative policy offering immediate Value-Added Tax (VAT) refunds to foreign tourists, significantly enhancing their shopping experience and positioning the country as a premier global shopping destination. This new initiative allows visitors to receive an instant refund of VAT directly at the point of purchase, eliminating the previous requirement of claiming refunds only at departure. Consequently, shopping tourism has surged noticeably, with cities like Shanghai reporting a 38% increase in tourist bookings compared to the previous year.

Under the policy, foreign tourists can claim up to an 11% refund on purchases made at designated stores clearly marked with the "Buy and Refund" logo. To qualify, tourists must make a minimum purchase of 200 yuan (approximately 27 US dollars) at a single store on the same day. Furthermore, the maximum limit for cash refunds has been doubled to 20,000 yuan (approximately 2,745 US dollars), further incentivizing larger purchases by international visitors.