China updated its tax refund policy for foreign tourists, shifting from a refund-upon-departure model to a refund-upon-purchase model, the State Taxation Administration (STA) said on April 8.

Foreign visitors can instantly claim value-added tax (VAT) rebates at tax-free stores, enabling them to reuse the refunded amount in real time for further shopping.

Already piloted in Shanghai, Beijing, Guangdong, Shenzhen, Sichuan and Zhejiang, the policy will be expanded nationwide.

Tourists making purchases at designated stores can receive their refunds on-site after completing a credit card pre-authorization.

Upon departure, foreign tourists need to present Chinese customs:

• Tax refund goods

• Refund Application Form for Overseas Visitors

• Invoices

• Passports or other valid ID

They also need to provide the tax refund agency:

• Valid lD

• Refund application form verified by customs

• Invoices for tax refund goods

And the refund agency will lift the pre-authorization once all information is confirmed.

If a foreign traveler fails to comply with the departure tax refund policy or the agreement signed with tax refund shops, exceeds the commitment period or does not depart from the designated port, the tax refund agency will recover the prepayment through credit card pre-authorization deduction.

(Source: State Taxation Administration)