Effective Date: 1 July 2026
Type: Legislation
China is continuing to expand its real-time tourist VAT refund regime to encourage inbound tourism and consumer spending. Since the launch of the “refund upon purchase” system in 2025, eligible foreign tourists can receive VAT refunds immediately at authorised retailers instead of waiting until departure. From 1 July 2026, China will simplify the process further by introducing random customs checks for refund claims below CNY 10,000 and expanding digital and paperless procedures. Tourists will also be able to complete customs formalities at departure points and will have 28 days to validate their refund claims when using instant refunds. The reforms follow strong growth in tax-free shopping activity and reflect China’s broader strategy to support tourism, retail spending, and economic growth.
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