【Chinese Souvenir】Instant Tax Refund: The Most Detailed Guide to the Policy! Must-Buy Chinese Souvenirs and Shopping Tips

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Departure tax refund refers to the refund of value-added tax on tax-refundable items purchased by foreign travelers at tax-refund shops when they leave the country at the departure port. The "buy now, refund now" policy is a convenient measure for departure tax refund. In areas where the departure tax refund policy has been implemented, when foreign travelers purchase tax-refundable items at "buy now, refund now" shops, they can apply for RMB (prepayment) equal to the tax refund amount on the spot at the shop after signing the agreement and obtaining credit card pre-authorization.

The departure date of the tax-free items purchased by overseas travelers should not exceed 90 days from the date of purchase. For example, if a traveler purchases tax-free items on March 1, he needs to leave the country before May 30 (inclusive) to apply for departure tax refund.

Under the "buy now, get refund now" policy for tax refund upon departure, when overseas travelers purchase tax-refundable items at "buy now, get refund now" stores, they must sign an agreement and agree on a promised departure deadline. If the traveler leaves the country at a designated port within the promised deadline as agreed in the agreement and meets the requirements of the tax refund policy upon departure, the tax refund agency will cancel the credit card pre-authorization for the traveler and handle the tax refund. If the traveler fails to fulfill the agreement, exceeds the promised deadline or fails to leave the country from the designated port, the tax refund agency will recover the prepaid amount through credit card pre-authorization deduction within 3 working days from the date when the traveler's promised departure deadline expires.

On April 8, 2025, the State Administration of Taxation issued the Announcement on Promoting the "Buy Now Refund" Service Measures for Overseas Tourists to Get Tax Refunds Upon Departure, which clearly stated that from that day on, the "Buy Now Refund" service measures would be promoted nationwide. Prior to this, the "Buy Now Refund" service measures for tax refunds upon departure had been piloted in Shanghai, Beijing, Guangdong, Sichuan, Zhejiang, Shenzhen and other places.

The "tax refund upon departure" policy for cross-border e-commerce exports to overseas warehouses will be implemented from January 27, 2025. Taxpayers who export goods by exporting to overseas warehouses (customs supervision method code "9810") can apply for export tax refund (exemption) after the goods are declared and leave the country.

With the continuous development of inbound tourism in China, more and more foreign tourists come to China for travel and shopping. This policy is particularly beneficial to shopping enthusiasts or those engaged in purchasing on behalf of others. When leaving the country at the end of the trip, they can apply for a tax refund on the tax-free items they purchased and earn the difference in tariffs. If they are lucky, they may even be able to earn back their travel expenses. This undoubtedly increases the attractiveness of shopping in the mainland and can further promote the development of the mainland's consumer market.

Store invoice prepayment: After overseas travelers purchase tax-refundable items at a "buy now, refund now" store and select this service, the "buy now, refund now" store or tax refund agency will present the agreement, and the traveler will sign to confirm. The store will then handle the credit card pre-authorization procedure for the traveler, issue the "Overseas Traveler Shopping Departure Tax Refund Application Form", and pay the advance payment on the spot.

Customs verification: When leaving the country, passengers must present the tax-refundable items, the "Departure Tax Refund Application Form for Overseas Passengers' Purchases", the sales invoice of the tax-refundable items and their valid identity documents to the customs for verification.

Review by the tax refund agency: Passengers submit their passports and other valid identity documents, the "Departure Tax Refund Application Form for Overseas Passengers' Shopping" with the customs' stamp, and the sales invoice of tax-refundable items to the tax refund agency in the departure port isolation area. After review by the tax refund agency, the credit card pre-authorization will be cancelled for passengers who meet the conditions, and the tax refund will be completed. The prepaid amount will be deemed to have been refunded; for those who do not meet the conditions, the prepaid amount will be recovered through the credit card pre-authorization deduction method.

The “Buy Now, Return Now” stores were previously piloted in Shanghai, Beijing, Guangdong, Sichuan, Zhejiang, Shenzhen and other places1. During the pilot process, the “Buy Now, Return Now” policy has generally run smoothly and has been welcomed by a large number of foreign tourists. It is now ready for nationwide promotion1.

Since the State Administration of Taxation issued the Announcement on Promoting the “Buy Now Refund” Service Measures for Departure Tax Refund for Overseas Tourists on April 8, 2025, the service measures have been promoted nationwide1. This means that in areas where the departure tax refund policy has been implemented, tax refund stores that are willing to provide the “buy now refund” service can become “buy now refund” stores after reaching an agreement with local tax refund agencies1. In the future, with the promotion and implementation of the policy, more and more stores will join the ranks of “buy now refund”, gradually covering most purchase points, and providing overseas tourists with more convenient and diversified tax refund options1. Foreign tourists who purchase tax-refundable items at "buy now, refund now" stores can collect the tax refund of the same amount on site after obtaining credit card pre-authorization1. When the passenger leaves the country, the customs verifies the passenger's identity and tax-refundable items; after the tax refund agency verifies the tax refund information of the purchase, it will immediately release the credit card pre-authorization guarantee and complete the departure tax refund matters.