[Source/Observer Network Deng Jun Editor/Zhao Qiankun]
On April 8, the State Administration of Taxation of China issued the "Announcement on Promoting the 'Immediate Refund upon Purchase' Service Measures for Outbound Tourist Shopping Tax Rebate", clearly stipulating the main contents, handling procedures, and implementation time of the outbound tourist shopping tax rebate "immediate refund upon purchase" service, and promoting this service measure from multiple local pilot programs to nationwide implementation.
The responsible person of the Goods and Labor Tax Department of the State Administration of Taxation stated that the tax department will strengthen the interpretation and guidance of relevant policies, continuously upgrade and improve system functions, optimize the tax refund process, and actively assist in attracting inbound tourists to consume in China, fully unleashing the potential of inbound tourism consumption.
A netizen commented: "China's 240-hour visa-free transit policy, combined with the national promotion of the outbound tourist shopping tax rebate 'immediate refund upon purchase' service measure, allows overseas tourists to cover enough expenses by purchasing goods in China, with the tax rebate alone covering the round-trip travel costs. They can make a profit by selling the goods back home, and at the same time enjoy a vacation in China. It's a win-win situation."
The upgrade of the departure tax rebate policy is essentially about stimulating consumption growth through price leverage. Experts and industry insiders believe that the nationwide promotion of the departure tax rebate "immediate refund upon purchase" policy will provide greater support for the consumption and repeat purchases of inbound tourists.
Another step forward on the path of facilitation
The "immediate refund upon purchase" refers to the fact that when an overseas traveler purchases duty-free items in a tax refund store and provides the required invoice and tax refund application form, they can apply for an immediate refund of the equivalent amount of RMB cash corresponding to the actual value-added tax refunded on the item on the same day from the tax refund store.
The departure tax rebate policy applies to foreigners and compatriots from Hong Kong, Macao, and Taiwan who have resided in China for no more than 183 days within the year. The items eligible for tax refunds must be purchased from designated tax refund stores, remain unopened and unused, and must be carried out of the country with personal luggage.
According to the current policy, the cumulative daily consumption amount in a single store for overseas travelers needs to reach 500 RMB to process the departure tax rebate. The items need to be taken out of the country with personal luggage through designated ports within 90 days from the date of purchase. The tax refund rate is 11%, and the actual amount credited after deducting 2% to 3% as tax agency service fees. The refund is usually paid in RMB, and can be chosen between cash or bank transfer.
As a convenient service initiative, "immediate refund upon purchase" is an upgraded optimization of the "departure tax rebate" policy, aiming to provide overseas tourists with more convenient and diverse tax refund options. Its biggest feature and advantage is that overseas tourists can receive their tax refund on-site at the pilot stores, facilitating secondary consumption.
In 2015, the "departure tax rebate" policy for overseas tourist shopping was first implemented in Beijing. Subsequently, Shanghai, Guangdong, Sichuan, Zhejiang, Hunan, and other regions also conducted related service pilots.
Data from the State Administration of Taxation shows that in 2024, the number of overseas tourists processing tax refunds, the sales volume of goods, and the total tax refund amounts increased by 2.3 times, 1.2 times, and 1.3 times year-on-year, respectively.
An official from the Goods and Labor Tax Department of the State Administration of Taxation stated, "'Immediate refund upon purchase' has been running smoothly since its pilot launch and has been widely welcomed by overseas tourists. It is now ready for nationwide promotion."
Zhou Zhanfeng, Director of the European Market Office of the Inbound Department at China International Travel Service Corporation Limited, told Observer Network that from the perspective of inbound tourists, the nationwide promotion of the departure tax rebate "immediate refund upon purchase" is another step forward on the path of facilitation, which can more effectively promote the consumption of duty-free goods by inbound tourists.
Netizens: May lead to "shopping spree" by overseas tourists
At Beijing Time April 8, the State Administration of Taxation of China announced that starting today, the "immediate refund upon purchase" service measure for outbound tourist shopping tax rebate will be promoted from multiple local pilots to nationwide implementation.
Based on a tax rebate rate of 11%, for every 10,000 RMB spent by an overseas tourist, 1,100 RMB in costs can be saved, which is particularly attractive for high-priced goods such as luxury items and electronics. International experience shows that tax rebate policies can increase tourism shopping consumption by 15% to 20%, driving employment growth in related industries.
Tax refund Visual China
Some netizens analyzed and believed that "this is precisely the ingenuity of the policy—converting export goods into domestic consumption, rendering U.S. tariff barriers ineffective."
According to the Bloomberg Economics model, Trump's tariff policies are expected to reduce the total import value of U.S. goods by approximately 30%. The Tax Foundation of the United States stated, "We estimate that tariffs will result in a decline of slightly more than $800 billion in U.S. goods imports in 2025, or 25%."
Opinions from some Chinese securities research institutions suggest that at this stage, it is unlikely that island/offshore entry duty-free businesses will be affected by additional tariffs. Under the background of significantly increased tariffs on taxed channels for international goods, the price advantage of duty-free channels is expected to be consolidated or even widened.
Other Chinese netizens joked online: "'Tariff refugees' may flood into China for shopping sprees" or "may trigger a foreigner-to-foreigner 'proxy shopping' trend in China."
Zhou Zhanfeng told Observer Network that China Duty Free Group is actively expanding urban duty-free shops and continuously broadening the range of duty-free products, increasing popular 3C products and Chinese cultural and creative products (such as tea, silk, porcelain, etc.) favored by inbound tourists, while incorporating intangible cultural heritage, trendy Chinese culture, and traditional cultural content to offer inbound tourists more affordable and quality souvenirs. The rich variety of duty-free goods will enhance the quality of China's tourism products and promote their upgrade.
Professor Dong Guanzi of the Shenzhen Tourism College of Jinan University told Observer Network that the nationwide promotion of the departure tax rebate "immediate refund upon purchase" has multiple positive effects: first, it makes shopping more convenient for overseas tourists; second, it encourages overseas tourists to shop and consume; third, it motivates service windows providing shopping services for overseas tourists to improve service quality; fourth, active shopping and high-quality services enhance the international tourism image, thereby driving the development of inbound tourism; fifth, through the transmission effect of the industrial chain and supply chain, it promotes economic growth.
For sustainable development of the departure tax rebate, attention can be focused on the following aspects:
Implementing a departure tax rebate for overseas tourists is a common practice internationally.
For example, according to Singapore's current policy for outbound tourists, foreign tourists can apply for a tax refund if they spend more than 100 Singapore dollars (including taxes). Additionally, Singapore's departure tax rebate policy is simple and easy to understand, with well-established airport tax refund facilities and services, including dedicated refund counters and clear signage, making it convenient for tourists to handle their tax refunds. Moreover, as a popular destination for international tourism and shopping, Singapore provides overall high-level tourism services, offering tourists a good tax refund experience.
In light of the current international trade and economic situation, as well as the development trends in China's duty-free industry, how much room for development and improvement does China have in the field of departure tax rebates?
Professor Dong Guanzi analyzed that during the comprehensive deepening of reforms and opening-up, there is still significant room for development and improvement in China's departure tax rebate policy, such as increasing the coverage of departure tax rebate stores, enriching the variety of goods, strengthening supervision and guidance for departure tax rebate stores, improving business training for relevant personnel, enhancing the intelligence level of departure tax review processes, and improving the signage guidance at ports such as airports, ports, and stations.
"The procurement of duty-free goods generally requires a long lead time, and currently, the inventory of duty-free enterprises is substantial. Many luxury goods have procurement channels in Europe," said Zhou Zhanfeng. In the short term, he believes that the current international trade and economic situation is unlikely to have a significant impact on China's duty-free market. In the medium to long term, global trade disputes may affect the spending of some foreign tourists—possibly reducing their travel budgets or even canceling trips. He suggested vigorously developing cross-border e-commerce so that overseas tourists can repurchase through online platforms, promoting sustainable development of inbound consumption.
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Original source: https://www.toutiao.com/article/7491599630161969715/
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