6 Chinese government departments issue new measures to optimize outbound tax refunds, boost inbound consumption

Six Chinese government departments, including the Ministry of Commerce (MOFCOM), the Ministry of Finance, and the State Taxation Administration, jointly issued a notice on Monday to further optimize outbound tax refund measures and expand inbound consumption, a move that will further streamline the tax refund process for foreign travelers in China.

This new measure was rolled out against the backdrop of a strong recovery in cross-border travel and rising foreign spending in China. The previous version of the optimization of outbound tax refund measures, the 1.0-version policy introduced last April, has already shown clear results and continued to boost inbound consumption.

For example, last year, the number of foreign travelers using outbound tax refunds nationwide rose by 305 percent year-on-year, reflecting a rapid release of consumption vitality, the Global Times learned from the MOFCOM.

The 2.0-version policy released on Monday builds on last year's version, introducing eight practical and actionable measures to make tax refunds for foreign travelers more convenient, time-saving, and hassle-free.

Specifically, more eligible stores are encouraged to register as tax refund outlets, with their locations scientifically optimized. Local authorities will also be supported in selecting key commercial areas, scenic spots, markets, and ports frequented by foreign travelers, aiming to achieve near-full coverage of tax refund stores in these priority locations, according to the notice.

In addition, a system of random spot checks will be implemented. Starting July 1, tax refund applications with sales of less than 10,000 yuan ($1,468.45) will be randomly selected for physical verification at a certain proportion. Applications with sales of 10,000 yuan or more will continue to undergo individual physical verification, said the notice.

Meanwhile, the "tax refund at the point of purchase" service will be further optimized. Efforts will be made to enable cross-location recognition, allowing travelers using this service to complete outbound tax refund procedures at different ports. The departure period for all locations under the "tax refund at the point of purchase" scheme will also be uniformly extended to 28 days.

Other measures also include implementing fully paperless tax refund procedures and creating tax refund service platforms at major exhibitions, such as setting up dedicated outbound tax refund service zones at major events like the China International Import Expo and the China International Consumer Products Expo.

China's outbound tax refund policy has continued to deliver results. In 2025, tax refund sales doubled year-on-year, while the number of travelers completing refunds tripled. As of now, the number of tax refund stores has exceeded 13,000, about four times the total at the end of 2024, according to the MOFCOM.