China’s Departure Tax Refund 2.0 Boosts Foreign Tourist Spending

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Yi Shen

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China’s Departure Tax Refund 2.0 Boosts Foreign Tourist Spending

China’s departure tax refund 2.0 speeds up tax refunds and improves shopping services for foreign tourists across China.

In April 2025, China introduced Version 1.0 of its optimised departure tax refund policy. Now, China has officially launched Version 2.0. Moreover, several key measures will take effect from 1st July this year.

According to China News Service, China’s Vice Minister of Commerce, Sheng Qiuping, said that under the new policy, refund applications for purchases below RMB 10,000 ( about 1,097 pounds) will follow a random inspection system from 1st July onwards. Therefore, only travellers selected for inspection will need to present goods to customs officers. As a result, waiting times at ports of departure should fall significantly.

In addition, travellers who lose paper refund forms or invoices will still be able to claim tax refunds through electronic records. Meanwhile, the “buy now, refund now” service already covers more than 8,000 shops nationwide. Notably, this figure has more than doubled compared with a year ago.

Official data also shows strong growth. Over the past year, the number of people using the “buy now, refund now” service rose by nearly 13 times year-on-year. At the same time, both refund-related sales and refund amounts increased more than ninefold.

Furthermore, China will establish dedicated departure tax refund service zones at major trade fairs, including the China International Import Expo, the Canton Fair, and the China International Consumer Products Expo. These measures aim to support overseas business visitors more effectively.

According to Fan Yong, the “buy now, refund now” scheme has boosted inbound consumer spending. Moreover, it has improved China’s international business environment and helped domestic brands reach global markets.

Meanwhile, Hong Kong China News Agency reported that China’s departure tax refund sales nearly doubled year on year in 2025. In fact, sales within a single year almost matched the total sales recorded during the entire decade from the policy’s launch in 2015 to 2024. In addition, the number of people claiming refunds reached 270,000, which was three times higher than in 2024.

At the same time, policies such as departure tax refunds, expanded unilateral visa-free access, and easier payment services have worked together with the “Shop in China” campaign. Consequently, inbound consumption and exports of travel-related services increased by nearly 40 per cent and 50 per cent, respectively. As a result, travelling and shopping in China have become increasingly fashionable among international visitors.

According to the Ministry of Commerce of the People’s Republic of China, the implementation of the “Version 2.0 policy” should further improve the shopping experience for foreign tourists visiting China.

“Recently, experiential and personalised consumption has become increasingly popular among overseas visitors,” said Yang Mu. “For example, some visitors come to China to order tailored suits or qipaos. Others attend sporting events or exhibitions. Meanwhile, some even learn tai chi in public parks or experience traditional Chinese medicine treatments such as massage and acupuncture. In other words, they are deeply engaging with everyday Chinese life.”

He also said that the Ministry of Commerce will continue to strengthen local brands and develop more high-quality Chinese products. In addition, the ministry will support 15 pilot cities in improving international consumer environments. Furthermore, it will continue to enhance payment convenience, expand multilingual signage, and create a more welcoming environment for international shoppers.

Written by Yi Shen. The poster is designed by Di Wang.

If you liked this article, why not read: China Travel Continues: Foreign Visitors Immersed in China’s Holidays

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