China has released version 2.0 of its tax refund policy for departing tourists

Shopping in China Becomes an International Trend. China is intensifying efforts to develop its departure tax refund system. Policies are being implemented to optimize the international consumption environment, including enhancing the departure tax refund scheme, unilaterally expanding visa-free entry, and improving payment convenience.

In 2025, the number of people receiving tax refunds in China reached 270,000, a threefold increase compared to 2024. As of May 2026, the number of tax refund shops has reached 14,000.

On May 18, 2026, China's Ministry of Commerce, together with the Ministry of Finance, the State Taxation Administration, and other departments, announced intensified efforts to optimize departure tax refund measures, referred to as the optimized "Departure Tax Refund 2.0" policy. These policies will take effect from July 1, 2026.

The operational procedures of the "Departure Tax Refund 2.0" policy mainly revolve around the following four core changes, representing these new "upgrades":

1. "One More": More Tax Refund Shops

• Broader Coverage: Key commercial districts, tourist attractions, ports, and exhibition venues (such as the China International Import Expo and the Canton Fair) have basically achieved full coverage of tax refund shops.

• Relaxed Registration: Newly established M-level enterprises can also register as tax refund shops. The nationwide total now exceeds 14,000.

• Operational Tip: Look for the "Departure Tax Refund" logo when shopping.

2. "One Less": More Efficient Port Verification (Effective July 1, 2026)

• Small-Value Random Check System: For refund applications with an amount ≤ RMB 10,000, only random physical inspections will be conducted. Physical verification is required only if selected; otherwise, processing is expedited.

• High-Value Still Fully Verified: Applications with a refund amount > RMB 10,000 will still require physical verification for each case.

• Effect: Significantly reduces customs clearance queue times, particularly benefiting tourists with small-value purchases.

3. "Two Transformations": Paperless + Standardized (Effective July 1, 2026) 3.1 Paperless Processing

• No Paper Documents Required: Customs or agents input the traveler's identity information (e.g., passport number), and the system automatically retrieves the tax refund application form and invoice information.

• Paper Option Retained: Travelers accustomed to paper documents can still use them for processing.

• Applicable Scenarios: Applicable to all departure tax refund methods (including "Instant Refund on Purchase" and centralized refund upon departure).

3.2 Standardized Service

• Cross-Region Recognition: An "Instant Refund on Purchase" processed in Hebei Province can be finalized at any port nationwide, such as Shanghai or Sichuan.

• Unified Time Limit: The departure time limit for "Instant Refund on Purchase" is uniformly extended to 28 days.

• Convenient Payment: Supports various payment methods (cash, bank card, mobile payment). Some shopping malls have already deployed self-service tax refund kiosks.

4. Simplified Operational Process Diagram (Using Standard Refund as an Example)

1. Shopping: Make a purchase (single transaction ≥ RMB 200) at a tax refund shop. Obtain the Tax Refund Application Form + Sales Invoice (recommended to take photos for records).

2. Before Departure:

If "Instant Refund on Purchase" was obtained: Receive the refund on the spot and depart with the electronic confirmation.

If "Instant Refund on Purchase" was not obtained: Bring the goods, application form, and invoice to the port's tax refund counter.

3. Port Processing (After July 1, 2026):

Input identity information → System automatically retrieves electronic documents → Small-value (≤10k) applications subject to random check only → Refund issued upon approval.

4. Departure: Clear customs with stamped documents/electronic records.

Departure Tax Refund Guide: