China's Tax Refund Stores Exceed 10,000

China’s National Tax Administration announced that the number of tax refund stores for foreign visitors has surpassed 10,000 as of the end of August, a significant milestone reflecting the robust growth of inbound tourism.

Strong Growth in Tax Refunds:

• Record Increase: In the first eight months of this year, the number of tourists claiming tax refunds soared by 247.8% year-on-year. Sales of eligible goods and the total amount of refunds also saw substantial increases of 97.5% and 96.9%, respectively.

• Driving Consumption: The administration highlights that the tax refund policy for departing travelers—which allows foreign tourists to reclaim VAT on eligible purchases—is converting rising travel flows into significant consumption momentum, making it a new engine for inbound tourism spending.

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Policy Evolution and Expansion:

• Policy Implementation: China first introduced its tax refund policy for foreign travelers in 2015, and since then, the volume of refunds has seen continuous year-on-year growth.

• Recent Improvements: In April of this year, China upgraded the policy with a package of enhanced measures. These improvements included:

  • Lowering the minimum purchase threshold for a tax refund.

  • Raising the ceiling for cash refunds.

  • Expanding the network of participating stores.

  • Broadening the range of eligible products.