China to simplify tax refund system for foreign tourists

The Ministry of Commerce of the People's Republic of China, in cooperation with relevant agencies, has published a notice on the large-scale optimization of the tax refund (tax free) system for foreign citizens. The package of measures is aimed at simplifying shopping operations for foreign guests and stimulating the influx of tourists visiting the country. The program envisions expanding the network of specialized shops, converting document management into an electronic format, and developing the instant refund service.

According to the new rules, regional authorities in China have been instructed to ensure maximum accessibility of tax-free shopping outlets in major shopping districts, tourist zones, and border checkpoints. Starting from July 1 of this year, a practice of selective verification of tax refund applications for purchases worth less than 10,000 yuan will be introduced. The customs and tax authorities of the PRC are transitioning to an online confirmation system for payment receipts, which will allow for a complete shift away from paper media.

Furthermore, it is reported that the permitted period of stay in the country after receiving an instant tax refund has been extended to 28 days. It is also planned to regularly establish special tax-free service zones within the framework of the largest international exhibitions held in China.