Policy announced: April 26, 2025
Source: Official announcement by the Ministry of Commerce (MOFCOM), jointly with five other Chinese government departments.
Key Highlights
- 🧾 Tax refund threshold lowered: Minimum purchase amount reduced from RMB 500 to RMB 200.
- đź’° Cash refund limit doubled: Increased from RMB 10,000 to RMB 20,000.
- 🏬 More tax refund stores: Encouraging new stores in airports, malls, hotels, and tourist zones.
- 🛍️ More Chinese products included: Expanding beyond international brands to promote domestic goods.
- 🚀 Simplified procedures: Faster approval, digital systems, and “immediate refund” services nationwide.
Overview
China has introduced new measures to make tax-free shopping easier and more attractive for international visitors. On April 26, 2025, the Ministry of Commerce (MOFCOM), along with the Ministry of Finance, the Ministry of Culture and Tourism, the General Administration of Customs, the State Taxation Administration, and the Civil Aviation Administration, jointly issued the Notice on Further Optimizing the Departure Tax Refund Policy and Expanding Inbound Consumption.
The announcement was made at a State Council press briefing on April 27, outlining a set of eight policy actions designed to simplify refund procedures, expand store networks, and promote China’s domestic products to global tourists.
1. Expanding the Network of Tax Refund Stores
Until now, tax refund shops have been concentrated mainly in large cities like Beijing and Shanghai.
The new policy encourages local governments to establish more refund stores in major commercial centers, scenic spots, airports, and hotels — places frequently visited by foreign travelers.
The approval process has also been simplified:
- Stores can now apply for refund eligibility even if established for less than one year.
- Review responsibility is moved from provincial to local tax offices.
- Approval time reduced to within five working days.
2. Lowering the Refund Threshold and Promoting Domestic Brands
To encourage wider participation, the minimum purchase amount for a tax refund has been lowered from RMB 500 to RMB 200, enabling smaller shops such as souvenir and specialty stores to join the program.
This change is expected to help more “Made in China” products — from traditional crafts to new lifestyle brands — reach international customers.
3. Enhancing the Refund Process and Payment Options
The refund process will now be faster and more convenient:
- Expanded “Buy and Refund on the Spot” services across China.
- Improved refund management system to shorten waiting times.
- Digital tracking codes for smoother customs inspection.
- Broader collaboration between tax refund agents, currency exchange points, and airport service centers.
The cash refund limit has been raised to RMB 20,000, and travelers can now choose from multiple refund methods — cash, bank card, or mobile payment — reflecting China’s advanced digital payment environment.
Significance
According to Vice Minister Sheng Qiuping, these measures will:
“Enhance the shopping convenience and satisfaction of international visitors, attract more inbound travelers, and connect China’s domestic market with global consumption trends.”
This initiative supports China’s broader effort to revitalize inbound tourism, boost retail spending, and promote domestic brands internationally, turning shopping into a more seamless and rewarding part of the travel experience.
