China's enhanced departure tax refund policy has given a significant boost to spending by inbound visitors to the country, with several cities reporting sharp increases in refund applications and refund amounts in the month since an updated version of the policy took effect on July 1.
The new measures include paperless processing, streamlined spot checks and a unified service code for foreign visitors. Travelers can now complete the entire procedure in a single form, while purchases under 20,000 yuan (about 2,966 U.S. dollars) qualify for on-the-spot refunds at designated "refund on purchase" stores.
Hangzhou Xiaoshan International Airport in east China's Zhejiang Province has deployed 24-hour self-service terminals, enabling travelers to get refunds within minutes. In July, Hangzhou airport saw both the number of applications and refund amounts more than double compared to July 2025.
Sichuan Province in southwest China has introduced cross-provincial mutual recognition for "refund on purchase," allowing travelers who make purchases in Sichuan, Chongqing, Yunnan or Shaanxi to claim their refunds at any of the departure ports across the four provinces. Sichuan's refund applications in July more than doubled compared to July 2025.
Guangzhou port in south China has added dedicated counters and multilingual services, improving passenger flow and inspection efficiency. Since July, customs has processed over 100 million yuan in refund applications, up approximately 150 percent year on year.
"This is my maybe eighth time (in China). I find it very easily to buy things here in China, like you can buy easily things with your cards, with cash, with other kinds of things. And so the technology is very good here in China. So you can buy, it's very easy," a Dutch visitor said.
The country's first online departure tax refund store opened in Beijing recently, alongside the city's first refund collection points in hotel lobbies.
In the first seven months of the year, Beijing ports processed 516 percent more refund applications than the same period last year, with total sales of items eligible for tax refunds exceeding 1 billion yuan (about 148.3 million U.S. dollars).
"In addition to bags and apparel, domestic digital products such as mobile phones and earphones are becoming increasingly popular. Cultural and creative souvenirs and trendy mystery boxes with distinctive Chinese characteristics have also become must-have items for inbound travelers returning home," said Liang Shu, deputy director of the First Inspection Division at Beijing Capital Airport Customs.
China's tax refund policy boosts inbound visitor spending, data shows
