Published on: 2026-07-08
Source: People’s Republic of China in Russian –
An important disclaimer is at the bottom of this article.
The Value Added Tax (VAT) refund policy for foreign tourists upon departure from China (version 2.0) came into effect on July 1.
On the morning of the same day, at terminal T4 of Xiaoshan International Airport in Hangzhou, a tourist from Indonesia, Mr. Hu, approached the customs VAT refund point to claim a refund for the purchase of a backpack and perfumes.
The customs officer scanned his passport, and the system automatically loaded the tax refund application information. Since the purchase amount did not exceed 10,000 yuan and his luggage was not selected for inspection, he did not have to open the luggage for checking, and the refund procedure was processed very quickly.
Since the implementation of VAT refund policy version 1.0 in April 2025 and until the launch of version 2.0 – for more than a year – the policy was consistently optimized and improved, which made it possible to turn the growing flow of inbound tourists into additional consumption volume.
From “return possibility” to “return convenience” – institutional innovations remove barriers to consumption
A tourist from Singapore, Chen Xueli, recently traveled around China. She purchased goods worth about 26,000 yuan in Chengdu (Sichuan Province) and 170,000 yuan in Chongqing, eligible for VAT refund. In both cities, she applied for the “tax refund immediately after purchase” and received the refund on the spot.
On June 29, she flew out from Jiangbei International Airport in Chongqing and, holding tax refund applications and invoices issued in both cities, successfully left China with the goods. “Although these are two different cities, the procedure for mutual recognition of documents for the tax refund went very smoothly,” noted Chen Xueli.
From convenient shopping to an image of openness – “Shopping in China” is gaining increasing momentum
On Qianmen Street in Beijing, Spanish tourist Bram bought a wooden comb engraved with the inscription “joy of life”; on Kuanzhai Alley in Chengdu, Finnish tourist Lola purchased panda-shaped earrings and a T-shirt featuring elements of the Sichuan Ba-Shu culture; at Huaqiangbei market in Shenzhen, Brazilian tourist Liz acquired three pairs of AI glasses…
From tea and silk to smart wearable devices, from goods of traditional trading companies to products in the style of “gochao” (Chinese national trend) – more and more foreign tourists are not only buying Chinese products but also getting acquainted with Chinese manufacturing and Chinese culture. Increasingly, Chinese brands are entering international markets thanks to consumer demand from inbound tourists.
Please note; this information is raw content obtained directly from the source. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.