Guide for Tax Refund for Overseas Tourists upon Departure

Refund upon departure and Refund upon purchase

Overseas visitors can be refunded value-added tax (VAT) for the tax-refundable goods they purchase at tax-free stores when they leave China from ports of departure.

Overseas visitors refer to foreigners and compatriots from Hong Kong, Macau and Taiwan Regions of China who reside in China’ s mainland for no more than 183 consecutive days before the date of departure.

Ports of departure refer to ports in regions where the departure tax refund policy is imple mented, which are officially open to the public and within which tax refund agencies are estab lished, including air transport ports, water ports and land ports.

Overseas visitors who purchase tax-re fundable goods at tax-free stores that provide the “refund-upon-purchase” service can claim tax refunds on-site at the stores after signing an agreement and completing a credit card pre-authorization :

1. Overseas visitors hold a credit card of his/her own with an operational pre-authoriza tion guarantee.
2. Overseas visitors promise to leave China within the prescribed time limit and from the designated ports.

Conditions

1. The amount of tax-refundable goods purchased by the same overseas visitor at the same tax-free store within the same day reaches 200 Chinese yuan
2. Tax-refundable goods have not yet been used or consumed
3. The departure date is no more than 90 days from date of the purchase of tax-refund-able goods
4. The tax-refundable goods purchased shall be carried with the overseas visitor himself/herself, or checked as his/her luggage upon departure

Amount of Tax Refund

From April 1, 2019, the calculation of VAT refundable shall be based on the invoice amount (including VAT) of tax-refundable goods. For items with the applicable tax rate of 13%, the tax refund rate is 11%. For items with the applicable tax rate of 9%, the tax refund rate is 8%.

Amount of the tax refund = sales invoice amount (including VAT) of the tax-refund-able goods * tax refund rate - service fee charged by tax refund agencies for processing the tax refund

Currency for Tax Refund

The currency for the tax refund is renminbi (RMB). Tax refunds can be paid either in cash or through bank transfer. If the amount of the tax refund is no more than 20,000 Chinese yuan, either of the two tax refund methods may be chosen. If the amount of the tax refund exceeds 20,000 Chinese yuan, the tax refund hall be made through bank transfer.

Refund-upon-departure flowchart

Refund-upon-purchase flowchart