Tax Refund

At present, Beijing, Shanghai, Tianjin, Shenzhen, Qingdao, Jiangsu Province, Hebei Province, Shaanxi Province, Yunnan Province, Anhui Province, Sichuan Province, Liaoning Province, Fujian Province, Hainan Province as well as Harbin, Heihe, Suifenhe in Heilongjiang Province and Nanning, Guilin, Fangchenggang in Guangxi have adopted a tax refund policy among overseas, Hong Kong, Macau, and Taiwan tourists. Visitors who have bought products at tax free stores in China can withdraw value added tax (VAT) before leaving. It's expected that in the near future the policy will come into effect in more and more China regions.

Tax Refund Process

  1. Overseas/Hong Kong/Macau/Taiwan visitors should stay in Mainland China for no more than 183 days consecutively to qualify for the tax rebate policy.
 2. The purchased goods should be for personal use and not prohibited to be taken out of Mainland China.
  See detailed Exit Regulations of China.
 3. A minimum of CNY 500 shall be spent in one designated tax free store during any one day by one tourist.
 4. The visitor shall exit from designated ports and ensure that the goods are brand new and unused. At present, the designated ports mainly include airports and cruise ports, like Beijing Capital International Airport, Shanghai Pudong International Airport, and Tianjin Binhai International Airport.
 5. The time span between the purchase date and the departure date shall be less than 90 days.
 6. The purchased goods must leave China along with the visitor.
 Currently, there are over 1,000 designated tax free stores in Beijing, over 700 in Shanghai, over 400 in Chengdu of Sichuan, over 400 in Shenzhen, 34 in Tianjin, 33 in Qingdao, 21 in Xiamen of Fujian, 9 in Qinhuangdao of Hebei, 8 in Haikou and 5 in Sanya ... They cover the major shopping malls, tourist shopping centers, and residence areas of foreigners. Here is a list of some:

 In Beijing: Gongmei Group, Wangfujing Department Store, Dong'an Department Store, and Wuyutai Tea Shop on Wangfujing Street; Huayuan Shopping Center, Pacific Department Store, and Hanguang Shopping Mall on Xidan Commercial Street…
 In Shanghai: Shanghai New World Co., Ltd, Maochang Optical, and Heng Da Li Watch Flagship Store on Nanjing Road; Huabao Pavilion and Tianyu Pavilion around Yuyuan Garden…
 In Xi'an: Kaiyuan Shopping Center, Parkson Shopping Center, Century Ginwa Shopping Plaza near the Bell Tower...
 In Tianjin: Yangliuqing Painting Store, Binjiang Shopping Center, Guorenzhang Nuts Store...
 In Chengdu of Sichuan: Renhe Spring Department Store, International Finance Square...
 In Haikou: S&S Department Store, Minsheng Department Store
 In Sanya: Yifang Shopping Center, Sanya International Shopping Center, Summer Mall

Dongan Department Store in Beijing

Tianyu Pavilion in Shanghai

 The refund rate is 11% of the invoice value. However, 2% of the rebates are charged by the rebate agency as service fee. Therefore, visitors actually enjoy a rebate rate of 9%.

Refunds = Invoice Value (VAT included) x Rebate Rate (11% - 2%)
For instance, if one spends CNY 1000 in a store, CNY 90 (CNY 1000 x 9%) will be returned.

The rebates will be given in CNY. If the amount is not beyond CNY 10,000, both cash and bank transfer rebates are allowed. Otherwise, if the amount exceeds CNY 10,000, only bank transfer is allowed.
  1. Purchase goods in designated stores with the "Tax Free" sign. Ask for the sales invoice and tax refund form from the clerk.
 2. Visit the customs office at the departure port and present the refund form, invoice, passport or ID card as well as the purchased products. If nothing goes wrong, the officer will stamp on the refund form.
 3. After, go through the joint inspection, head to the refund counter, have the materials examined and have the rebates back.

 Note: Under the condition that all necessary materials are prepared, it takes three to five minutes at the customs office and refund desk respectively. On average, it takes a visitor about 15 minutes to go through all the formalities. However, it's strongly recommended to spare additional 40 minutes to an hour for the whole process.

 Location for Custom Verification and Refund at Main Exit Ports

Designated Exit Ports	Check Points of Customs	Location of Refund Counter
Beijing Capital International Airport	2F, International Departure Zone, T2 Zone C, 2F, T3 (check-in items); Zone E, 2F, T3 (carry-on items)	T-mouth, 2F, International Departure Zone, T2; Zone E, 2F, T3
Shanghai Pudong International Airport	Gate 10, International Departure Hall, T1; Gate 25, International Departure Hall, T2	Separate Zone for international departures
Shanghai Hongqiao International Airport	Gate 6, International Departure Hall, T1	Separate Zone for international departures
Shenzhen Bao'an International Airport	Customs Surveillance Zone, Departure Hall, Terminal T3 Floor 3	See the signpost inside the Isolated Area of Terminal T3
Chengdu Shuangliu International Airport	Left of International Entry/Exit Passage, International Departure Zone, T1	Boarding Gate 102, International Departure Zone, T1
Qingdao Liuting International Airport	Near the entrance of the Separate Zone for international departures (check-in items); Boarding Gate 8, Separate Zone for international departures (carry-on items)	Boarding Gate 8, Separate Zone for international departures
Tianjin Binhai International Airport	International Departure Hall, T1	Separate Zone for international departures

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 Instant tax refund enables overseas travelers to receive tax refund on-site after purchase, rather than apply for a refund at the airport or port when leaving. The policy has been piloted in Shanghai, Beijing, Guangdong, Sichuan, Zhejiang and Shenzhen, and has been welcomed by overseas travelers, thus it is extended to the whole country successively. 
  Step One: Receive Tax Refund On-site. 
While tourists making purchase at designated tax-free shops, the shops will issue VAT invoice and the Tax Refund Application Form to tourists. After, tourists need to sign the agreement for "instant tax refund" at the shops or the Buy & Refund Center and complete a credit card pre-authorization with the help of the shops or the center. Tourists will then receive the pre-paid tax refund immediately which can be used for further purchase.

Note: Tourists are supposed to hold a credit card ready for pre-authorization guarantee.

 Step Two: Go through the Customs Verification
When leaving the country, tourists should declare to the customs and undergo the customs verification with the tax rebate items, his or her passport, VAT invoice, and Tax Refund Form.

 Step Three: Refund Agencies Verify and Lift the Pre-authorization
At the departure port, tourists shall go to the refund agency after customs check with tax refund application form verified by China Customs. The refund agencies will confirm that the tourist is eligible for the instant tax refund in accordance with the agreement and then release the credit card pre-authorization. And the pre-paid refund will then be the final tax refund. 

Notably, if it happens that the tourist does not qualify for the instant tax refund, for example, the tourist don’t leave within the specified time written in the agreement which has been signed at tax-free shops, the tax refund agency will charge the traveler’s credit card.