China to Launch Fully Paperless Tourist VAT Refunds from September 1, 2026

China will make tourist VAT refunds fully paperless from September 1, 2026. The reform will speed up processing and support instant refunds, while purchases below CNY 10,000 (approx. €1,295.79) are generally subject only to random customs checks.

The reform is intended to speed up processing at airports and other departure points, expand the use of digital refund service codes, support online duty-free and tax-refund shopping pilots, and integrate with China’s growing instant “refund upon purchase” program.

China has continued to expand its tourist VAT refund system to encourage inbound tourism and consumer spending. New measures announced on May 12, 2026, build on the nationwide rollout of the instant refund mechanism introduced in April 2025.

Under this system, eligible foreign tourists shopping at authorized tax-refund stores can receive their VAT refund immediately at the point of sale instead of waiting until departure. The scheme was first piloted in Shanghai, Beijing, Guangdong, Sichuan and Zhejiang before expanding to other regions, including Jilin and Inner Mongolia, in November 2025.

Further simplifications took effect on July 1, 2026. Purchases below CNY 10,000 are now generally subject to random customs inspections instead of mandatory checks for every refund claim. Claims above this threshold still require full customs verification.

China is also increasing the number of authorized refund stores at tourist attractions, shopping areas, and transport hubs. Tourists using the instant refund service may complete customs validation at their departure point and must leave China within 28 days of receiving the refund.

The reforms follow strong growth in tax-refund shopping during 2025, including a reported 367% increase in VAT refund applications and almost 40% growth in inbound consumer spending. The measures show that China increasingly views VAT refunds as both a tax simplification tool and a way to support tourism and retail activity.