China's latest departure tax refund measures will allow overseas visitors to obtain instant refunds across more regions and give them up to 28 days to leave the country, making multi-city trips easier and encouraging longer stays and greater spending.
Jointly issued by six central departments, including the Ministry of Commerce, the Ministry of Finance and the State Taxation Administration, the new policy package upgrades the country's refund-upon-purchase service through two main changes: cross-regional recognition among tax refund agents and a unified 28-day departure deadline.
"Cross-regional recognition allows overseas visitors to plan their trips to China with greater freedom and convenience," said Xie Zhenfa, deputy dean of the School of Economics at Xiamen University. "After receiving an instant refund in one city, they can travel to another city and continue spending without having to worry about their departure arrangements."
Under the country's earlier instant tax refund service, eligible overseas visitors shopping at participating stores can sign an agreement and provide a credit card preauthorization to receive an advance payment in renminbi equal to the expected tax refund. That brings forward a process that would otherwise be completed at the departure port.
