Going to China for tourism, business, or to meet friends and family? Do not forget to ask for your tax refund on purchased items before leaving the country! Here is how the process works and how much you can get back.

Who qualifies for tax refund?

The person eligible for tax refund is any foreign visitor holding a valid passport, or a Hong Kong, Macau and Taiwan resident holding Mainland Travel Permit. Furthermore, the visitor should stay in Mainland China for no more than 183 consecutive days to qualify for the refund.

Tax Free goods

According to the announcement issued by the General Administration of Customs of China, goods eligible for tax refund refer to the personal articles purchased by inbound tourists, excluding the items listed as prohibited from Import and Export. Non-refundable goods are gold, silver and other rare metals and their products; valuable cultural and natural relics; food, medicine, pharmaceutical products; other goods which are absolutely prohibited from export by law.

Tax refund rate

The minimum purchase amount for tax refund is RMB 500/day/customer, and the amount that can be claimed back depends on the VAT applied to the category of products. If it applies a VAT rate of 13%, the refund amount is 11% of VAT invoice. If it applies a VAT rate of 9%, the refund amount is 8% of VAT invoice. Furthermore, a processing fee of 2% will be deducted from the amount eligible for refund. Here an example to clarify the calculations.

RMB500 => GROSS TAX REFUND RMB55 (= RMB500*11%) – COMMISSION RMB 10 (RMB500*2%) = RMB 45 NET RAX REFUND

Required documents and customs verification

To apply for tax refund, tourists who have purchased goods eligible for departure tax refund need to claim the Application Form of Departure Tax Refund (associated or not to a processing company).

Passengers should take the verified Application Form of Departure Tax Refund and personal ID for tax refund in the tax refund agencies at the airport. Goods must be available for presentation at the Customs Validation Counter.

The currency used for tax refund is RMB. If the amount of refund exceeds RMB10,000, the refund agency shall transfer the money to the buyer's bank account.

If you did not use a processing company, follow the instructions on your tax-free form to receive your refund.

We wish you happy shopping while in China!