New Version of Tax Refund Policy: What Are the Highlights?

Q: The Ministry of Commerce and other departments recently issued a notice on strengthening tax refund measures for overseas tourists to expand inbound consumption. What are the highlights of this "Version 2.0" tax refund policy? What conveniences will it bring to inbound tourists?

A: The newly launched "Version 2.0" tax refund policy is an upgrade based on last year's policy. It introduces eight specific measures, including expanding the coverage of tax refund stores, implementing a selective inspection system for small-value items, and optimizing the "instant refund" service. These measures will further facilitate the tax refund process for overseas tourists and improve the inbound consumption environment.

Reducing Queuing Time at Ports

The new policy stipulates that, effective July 1, 2026, for refund applications with a tax refund amount of less than 10,000 RMB, only a certain percentage will be randomly selected for physical inspection. Only those tourists whose applications are selected will need to undergo physical inspection by customs. This will significantly reduce queuing time at ports. For refund applications with a tax refund amount of 10,000 RMB or more, physical inspections will still be conducted on a case-by-case basis.

Optimizing the "Instant Refund" Service

In the past, during the pilot and nationwide rollout of the "instant refund" service, there were issues such as the lack of cross-region mutual recognition and inconsistent departure deadlines across different regions. In response, the Ministry of Commerce, in collaboration with relevant departments, has actively coordinated with tax refund agencies to promote mutual cross-region recognition of the "instant refund" service. This means tourists can complete their tax refund procedures at any departure port, regardless of where the purchase was made. At the same time, agencies have been instructed to extend the departure deadline for the "instant refund" service to a uniform period of 28 days across all regions.

Agencies such as the Bank of China and the Industrial and Commercial Bank of China have developed self-service tax refund machines, which have been deployed in shopping malls to provide standardized and automated services.

Increasing the Number of Tax Refund Stores

The new policy proposes expanding the coverage of tax refund stores. It encourages more qualified stores to register as tax refund stores and optimizes the layout of these stores. It supports localities in selecting a number of key commercial districts, scenic spots, markets, and ports that receive a high number of overseas tourists, with the goal of achieving basic full coverage of tax refund stores in these key locations.

Furthermore, to facilitate shopping and tax refunds for exhibitors and merchants attending major exhibitions such as the China International Import Expo (CIIE), the Canton Fair, and the China International Consumer Products Expo (CICPE), dedicated tax refund service zones will be set up at these exhibitions, creating an exhibition tax refund service platform.

Implementing Paperless Processing

The new policy stipulates that, effective July 1, 2026, customs authorities and tax refund agencies will be permitted to conduct online verification and process tax refunds using electronic refund applications and invoices for goods purchased. Once customs or the agency enters the tourist's identity information, the system will automatically retrieve the relevant application and invoice information. This eliminates the requirement for paper documents. Of course, tourists who prefer to continue using paper applications may still do so.

The English version is for reference only. If there are differences between the English version and the Chinese version, the Chinese version shall prevail.
https://tradeinservices.mofcom.gov.cn/article/zhengce/zcwd/202606/183276.html

Source: Economic Daily