China's State Taxation Administration recently issued the "Announcement on Promoting the 'Refund-Upon-Purchase' Service for Tax Refunds on Purchases by Overseas visitors upon Departure," extending the pilot service—previously tested in select provinces and cities—nationwide, further enhancing the shopping experience for overseas visitors.

What is the "Refund-Upon-Purchase" service of the Departure Tax Refund Policy?

The "Refund-Upon-Purchase" service allows eligible overseas visitors who purchase tax-refundable goods at designated stores offering this service to receive a cash advance equivalent to the tax refund amount (hereinafter referred to as the "advance payment") on-site after signing an agreement and completing a credit card pre-authorization at the store.

What tax is refunded under the Departure Tax Refund Policy?

The departure tax refund refers to the refund of Value-Added Tax (VAT) on tax-refundable goods purchased by overseas visitors at designated tax-refund stores when they depart the country.

Which overseas visitors are eligible for the "Refund-Upon-Purchase" service?

① Overseas visitors should possess a credit card capable of supporting pre-authorization guarantees.

② Overseas visitors should commit to departing within the specified timeframe and from designated ports.

Overseas visitors should commit to departing within the specified timeframe and from designated ports.

What are the features and advantages of the "Refund-Upon-Purchase" service?

Compared to the traditional departure tax refund process, the most distinctive feature and highlight of "Refund-Upon-Purchase" is that it advances the refund step.

Overseas visitors can receive the tax refund amount during the shopping, allowing them to directly and tangibly experience the benefits of the refund. This facilitates the use of the refunded amount for additional consumption right at the point of purchase.

Procedures for the "Refund-Upon-Purchase" service

Overseas visitors utilizing the "Refund-Upon-Purchase" service primarily go through three key steps:

(1) Storesissue the Refund Application Form and make advance payment: Designated "Refund-Upon-Purchase" stores or authorized tax refund agencies should proactively present the service agreement. Once the visitor signs and confirms, the store will process the credit card pre-authorization, issue the "Refund Application Form for Overseas Visitors" and provide the advance payment for tax refundon-site.

(2) Customs inspects and verifies (upon departure). Visitors should prepare the following for inspection at customs: the tax-refundable goods, the Refund Application Form for Overseas Visitors, the sales invoice for the goods, and their valid personal identification documents.

(3) Tax refund agencies examine. For eligible overseas visitors, the tax refund agencies shall release the credit card pre-authorization, finalize the tax refund process, and the advance payment shall be considered the final tax refund. Required documents for this examination include: the visitor's valid passport/ID, the customs-verified and stamped Refund Application Form for Overseas Visitors, and the sales invoice for the goods.

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