China is expanding its instant tourist VAT refund system to make tax-free shopping easier for foreign visitors and support inbound tourism. From 1 July 2026, refund claims below CNY 10,000 will face only random customs checks, reducing queues at departure points. The reform also expands authorised refund stores, promotes digital processing, and gives tourists 28 days to leave China and validate claims. Overall, the measure supports retail growth, tourism spending, and smoother VAT refund procedures.
China to Simplify Tourist VAT Refunds to Boost Inbound Tourism
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Author: Ljubica Blagojević
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Content accuracy validation date:
29.05.2026
Content accuracy validation time:
08:17h
From 1 July 2026, customs checks will be simplified for lower-value claims. VAT refund applications involving purchases below CNY 10,000 will be subject to random inspections instead of mandatory checks for every application, while higher-value claims will still require full customs verification.
The reform is expected to reduce queues and waiting times at airports and ports. China will also expand the number of authorised VAT refund stores in tourist areas, shopping districts and transport hubs, while increasing paperless and digital refund processing.
Tourists using instant refund services will be able to complete customs formalities at departure points and will have 28 days to leave China and validate their refund claims.
The measures follow strong growth in tax-free shopping activity in 2025, including a reported sharp increase in VAT refund applications and inbound consumer spending. Overall, China is using VAT refund simplification not only as a tax administration improvement, but also as a tool to stimulate tourism, retail sales and foreign visitor consumption.
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