Your guide to the Chinese Mainland’s departure tax refund policy

Considering a shopping trip to the Chinese Mainland? Now might be the perfect time. The nation has introduced a series of measures that streamline and optimise its departure tax refund policy, making it easier than ever for overseas travellers to save money. From how to enjoy instant cashback to key refund requirements worth knowing, our guide will help you spend smarter and make your travel dollars go further.

What is the latest tax policy? 

Shifting to an instant tax refund model 

First introduced in 2015, China's departure tax refund policy allows overseas travellers to claim value-added tax (VAT) refunds on eligible goods purchased at designated retailers. This covers most tangible consumer products, including luxury items, electronics, accessories, crafts and specialty products. Standard VAT rates vary in the Chinese Mainland, but most consumer goods are set at 13 per cent. Travellers can enjoy savings up to 11 per cent of the initial price after deducting the 2 per cent administrative fee.  

Traditionally, tax rebates can only be processed when leaving the Chinese Mainland at departure checkpoints such as airports, ferry terminals or border crossings. Due to the cumbersome process of last-minute paperwork and enduring long queues at departure, many tourists end up forfeiting their tax refund claims. 

With the recent pivot to a “refund upon purchase” model – implemented in April 2025 – foreign travellers can now reclaim their tax refund immediately at authorised stores or centralised refund points. The new tax refund programme not only offers tourists a more streamlined shopping experience, but also frees up extra cash to use for the remainder of the trip. All overseas visitors, residents of Hong Kong SAR, Macao SAR and Taiwan, China who stay in the Chinese Mainland for no longer than 183 consecutive days and are departing within 90 days of purchase are eligible to apply for tax refunds.  

While the instant tax refund programme has been rolled out across the Chinese Mainland, major cities such as Beijing, Shanghai, Guangzhou and Shenzhen have the most comprehensive network of participating stores. More instant tax refund service points are gradually being set up across the nation’s tourist hotspots and major shopping areas. 

Easing tax refund rules

Concurrently, China has further relaxed its departure tax refund requirements so that tourists can maximise their tax benefits while shopping in the Chinese Mainland. 

Foreign nationals now only need to spend a minimum of CN¥200 to qualify for tax refunds – a significant reduction from the previous threshold of CN¥500. Refunds are payable through a variety of channels, including mobile payments, bank transfers and cash. Prefer to be paid in cash? Good news – the upper limit for cash refunds has been raised from CN¥10,000 to CN¥20,000. If your tax refund amount exceeds CN¥20,000, you can opt for payment via bank transfer.

How to claim your instant refund

1. Spend a minimum of CN¥200 at a single participating shop within the same day. These shops are typically found in major shopping districts – look out for clear signage indicating tax-free shopping with instant refund. 
2. Apply for a tax refund in-store or at a nearby instant tax refund service point. You’ll be asked to sign a simple agreement and pre-authorise your credit card. A temporary hold for the refund amount will be placed on your card and lifted after customs inspection. 
3. Receive your tax refund immediately through your preferred payment method.
4. Before departing the Chinese Mainland, visit your airport or exit port’s tax refund customs kiosk. You will need to present your purchases, tax refund forms, invoices and travel documents for verification. Remember – do not open any tax-refunded goods until you’ve departed. Items must be unconsumed and kept in their original packaging for customs inspection.

Tax-free shopping in Shenzhen made easier

If Shenzhen’s not already on your travel radar, then it ought to be. To support and further streamline the tax refund experience, the city has piloted a “one order, one bag” programme at three shopping malls, making the city even more of a shopper’s paradise. Under the new scheme, shops in designated malls will package refundable goods and tax refund forms together in a transparent, sealed bag, allowing customs officers to inspect and verify the purchases more efficiently. Compared to the existing procedure, travellers can avoid the hassle of sorting forms and goods for inspection, effectively halving process time and offering greater convenience.