China to further upgrade departure tax refund policy from 1 July 2026

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New measures include extending the refund-upon-purchase period to 28 days and introducing fully digital tax refund processing to enhance the travaller experience and boost inbound consumption.

China has announced eight new measures to further enhance its departure tax refund policy, with paperless tax refund processing and a new inspection arrangement for lower-value refund claims set to take effect on 1 July 2026.

The upgraded framework builds on the enhanced departure tax refund policy introduced in April 2025. It aims to streamline refund procedures, improve shopping experiences for international travellers, stimulate inbound consumption, and support the “Shopping in China” campaign.

The eight measures include:

• Expanding the network of tax refund stores in major shopping districts, tourist attractions, and ports of entry.
  
• Optimising inspection procedures. From 1 July 2026, tax refund applications involving purchases of less than RMB10,000 will be subject to random inspections, while applications involving purchases of RMB10,000 or above will continue to undergo individual inspections. The move is intended to improve clearance efficiency and reduce waiting times at ports.
  
• Enhancing refund-upon-purchase services. Travellers who receive instant tax refunds at the point of purchase will be allowed to complete departure tax refund procedures at ports outside the location where the purchases were made. In addition, the eligible refund period will be extended to 28 days nationwide.
  
• Introducing fully paperless processing. From 1 July 2026, departure tax refund procedures will be completed and verified electronically, enabling a fully digital refund process.
  
• Expanding tax refund services at major exhibitions. Dedicated tax refund service areas will be established at major events, including the China International Import Expo (CIIE), the China Import and Export Fair (Canton Fair), and the China International Consumer Products Expo.
  
• Improving the inbound consumption environment by enhancing payment convenience, developing internationally recognised consumption clusters, and increasing international flight routes and capacity to attract more overseas visitors.
  
• Strengthening policy promotion through the distribution of departure tax refund information via inbound flights, airports, hotels, and media platforms.
• Enhancing overseas outreach. In conjunction with the “Shopping in China” campaign, promotional activities will be conducted overseas to raise awareness of the upgraded policy and encourage inbound travel and spending.

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