What is China's Tax Refund Policy?

China's Tax Refund Policy for overseas visitors allows foreign tourists to receive a refund of Value-Added Tax (VAT) paid on eligible purchases made in China.

The policy is designed to encourage tourism and shopping by allowing non-residents to claim back a portion of the VAT (typically 11% of the purchase price) on goods purchased in China that will be taken out of the country.

To be eligible, you must be a foreign tourist visiting China for less than 183 days, make purchases at designated tax-free shops, and meet minimum spending requirements.

Official Reference Links

Below are official information sources from the Chinese government regarding tax refund policies to help you understand the latest regulations and policies.

China Government Tax Refund Policy

"Buy now! 现在就买" policy interpretation published by the Chinese government website, providing tax refund guidelines for foreign visitors shopping in China.

Visit China Government Tax Refund Policy Page

How to Use This Calculator

This calculator helps you estimate the tax refund amount you can expect to receive when shopping in China as an overseas visitor.

Enter your total purchase amount in your preferred currency
Select your preferred refund method (cash, credit card, Alipay, or WeChat Pay)
Indicate if purchases were made at multiple stores (separate receipts)
Optionally adjust the service fee if you know the specific rate

Remember that the minimum purchase amount to qualify for tax refund is 200 CNY at the same store on the same day.

Tax Refund Calculation Formula

The China tax refund is calculated based on the VAT amount included in your purchase price, with a standard refund rate applied, minus service fees.

VAT Amount Calculation

$$\text{增值税金额} = \frac{\text{购物金额} \times \text{增值税率}}{1 + \text{增值税率}}$$

Where VAT rate is typically 13% for most retail goods in China.

Refund Amount Calculation

$$\text{退税金额} = \frac{\text{购物金额} \times \text{退税率}}{1 + \text{增值税率}}$$

Where refund rate is typically 11% for general merchandise.

Actual Refund Calculation

$$\text{实际退税金额} = \text{退税金额} - \text{手续费}$$

Service fees typically range from 1% to 3% depending on the refund method and agency.

Tax Refund Process

To claim your tax refund when shopping in China, follow these steps:

1. Shop at Tax-Free Stores

Look for stores displaying the "Tax Free" logo. Make sure your purchase meets the minimum amount requirement (200 CNY at the same store on the same day).

2. Request Tax Refund Form

Ask the retailer to issue a tax refund application form. You'll need to present your passport and may need to fill out some information.

3. Customs Verification

Before leaving China, present your unused goods, tax refund form, passport, and original receipts to customs for verification and stamping.

4. Claim Your Refund

After customs verification, proceed to the tax refund counter at the airport or border crossing to receive your refund in your preferred method.

Required Documents

Valid passport
Original sales invoices
Tax refund application form
The purchased goods (must be unused and taken out of China)

Frequently Asked Questions

Where can I shop to get a tax refund?

Purchases made at stores with the "Tax Free" sign are eligible for a tax refund upon departure.

What is the minimum purchase threshold to qualify for departure tax refund?

Overseas travelers are eligible to apply for a refund if they spend at least 200 yuan (about $27.75) at the same store on the same day and meet other relevant requirements.

What is the maximum amount for departure tax refund?

The upper limit for cash refunds has been raised from 10,000 yuan to 20,000 yuan, with no cap on other refund methods.

How is the tax refund amount calculated?

Amount of the tax refund = sales invoice amount (including VAT) of the tax-refundable goods × tax refund rate - service fee charged by tax refund agencies for processing the tax refund. In accordance with China's VAT rate, the tax refund rate for general merchandise is 11%. After deducting service fee, the actual refund is about 9% of purchased merchandise.

How can I claim a tax refund?

China has significantly expanded the implementation of the "refund-upon-purchase" policy for overseas visitors. While shopping at designated stores, they can receive their refund on-site after completing a credit card pre-authorization. Alternatively, follow the traditional process: make purchases at tax-free stores, get a refund application form, have customs verify your goods before departure, then process your refund at the designated counter.

China Tax Refund Calculator

Calculate Your Tax Refund

China Tax Refund Information