What Is Tax Refund Rate for Shopping in China?

Shopping in China may enjoy a departure tax refund when they purchase eligible goods from designated tax refund stores and take the goods out of China when leaving the country.

China’s departure tax refund policy currently has two main refund rates: 11% and 8%. The refund rate depends on the VAT rate applied to the goods purchased.

For overseas travel agents and tour operators, this is useful information to share with clients who plan to shop during their China trip.

What Are the Tax Refund Policies for Visitors Traveling to China?

China’s departure tax refund policy has two main refund rates:

11% and 8%.

These two rates are directly linked to the original VAT rate of the goods.

In simple terms, different types of goods may have different VAT rates, so the tax refund rate may also be different.

Which Goods Can Enjoy an 11% Tax Refund in China?

The 11% tax refund rate usually applies to goods that were originally subject to a 13% VAT rate.

For many common shopping items, this is the main tax refund rate that foreign tourists may see when shopping in China.

However, the final refund amount received by the traveler may be lower because the tax refund agency normally charges a service fee.

Which Goods Can Enjoy an 8% Tax Refund in China?

The 8% tax refund rate usually applies to goods that were originally subject to a 9% VAT rate.

This means some eligible goods may not receive the 11% refund rate, but may instead qualify for the 8% refund rate.

Travel agents should explain to clients that the exact refund rate depends on the product category and the VAT rate shown in the official tax refund process.

Tax Refund Counter at Chinese Airports

How Much Money Can Foreign Tourists Actually Receive?

Although the official tax refund rates are 11% and 8%, the actual amount received by the tourist is usually lower.

This is because the tax refund agency normally charges a 2% service fee. As a result:

For goods with an 11% refund rate, the tourist may actually receive about 9% of the invoice amount.
For goods with an 8% refund rate, the tourist may actually receive about 6% of the invoice amount.

How Is the Actual Tax Refund Amount Calculated?

The simple calculation formula is:

Actual refund amount = Invoice amount × tax refund rate after service fee

For example:

If a tourist buys goods that qualify for an 11% refund rate, and the tax refund agency charges a 2% service fee, the tourist may finally receive about 9% of the invoice amount.

If a tourist buys goods that qualify for an 8% refund rate, after the 2% service fee, the tourist may finally receive about 6% of the invoice amount.

This is a simple way for overseas travel agents to explain the policy to clients before they travel to China.

Minimum Purchase Amount Eligible for China Tax Refund?

When traveling in China, visitors need to spend at least RMB 200 in one purchase to apply for a departure tax refund.

The purchase must be made at a designated tax refund store.

This low minimum purchase amount makes the policy useful not only for luxury shoppers, but also for ordinary tourists buying souvenirs, gifts, tea, silk, local products, handicrafts, or other eligible goods.

Can Foreign Tourists Receive the Refund in Cash?

Yes, foreign tourists may choose cash refund or bank transfer when the refund amount is RMB 20,000 or below.

If the refund amount is more than RMB 20,000, the refund can only be paid by bank transfer.

Travel agents should remind clients to check the payment method at the airport, port, or tax refund agency before departure.

Foreign tourists are applying for a tax refund

Who Can Apply for China’s Departure Tax Refund?

The policy applies to visitors from foreign countires and visitors from Hong Kong, Macao, and Taiwan who meet the required conditions.

In general, eligible visitors should not have stayed in mainland China for more than 183 consecutive days.

They must also buy eligible goods from designated tax refund stores and take the goods out of China when they leave.

How to Apply for Tax Refund in China? Visitors Should Know

The basic process is simple.

First, tourists need to shop at a store with the tax refund sign.

Second, they need to ask the store for the required tax refund documents after purchase.

Third, when leaving China, they need to present the goods, invoice, passport or travel document, and refund documents for customs verification.

Finally, after customs approval, they can complete the refund process at the tax refund agency.

What Is the “Buy and Refund Immediately” Service in China?

Some cities in China, such as Beijing and Shanghai, have introduced a “buy and refund immediately” service.

This means eligible foreign tourists may receive the refund directly at participating stores after shopping, instead of waiting until they leave China.

However, tourists still need to complete the final customs verification when departing from China.

For multi-city tours, travel agents should check the latest local policy and participating stores before arranging this service for clients.

Buy and Refund store

China’s Tax Refund Policy, Overseas Travel Agents Should Know

China’s tax refund policy can help make China tour packages more attractive.

Many international travelers like to buy local products during their trip, including tea, silk, jade, pearls, handicrafts, Chinese cultural gifts, fashion items, skincare products, electronics, and souvenirs.

When clients understand that they may receive part of the tax back, they may feel more confident about shopping in China.

For tour operators, incentive groups, business delegations, and leisure groups, this can improve the overall travel experience.

What Should Travel Agents Tell Clients Before Shopping in China?

Travel agents should remind clients of several important points.

Clients should shop only at designated tax refund stores if they want to apply for a refund.

They should keep the invoice and tax refund documents carefully.
They should not use or consume the goods before leaving China if customs inspection is required.
They should leave enough time at the airport or port for customs verification and refund processing.
They should also understand that the actual refund amount is usually the official refund rate minus the service fee.

ChinaTourDMC Helps Travel Agents and Partners With China Shopping Arrangements?

We assist travel agents in designing China travel itineraries with suitable shopping activities, such as product sourcing trips to Yiwu, visits to Guangzhou for the Canton Fair, and tours of wholesale markets.

For travel agents with clients interested in shopping, we can help recommend suitable destinations and remind travelers about China’s tax refund process.

Tax Refund Sign for Foreign Visitors in China

Is Shopping in China Becoming More Convenient for Foreign Tourists?

Yes.

China is continuing to improve the shopping and tax refund experience for foreign visitors.

With clear refund rates, a lower minimum purchase amount, cash or bank transfer options, and “buy and refund immediately” services in some cities, shopping in China is becoming easier for international travelers.

For travel agents, this is a useful update to include in China tour proposals, client travel notes, and pre-departure information.

Frequently Asked Questions About Tax Refund

Common questions from global travel agents and tour operators about B2B China travel

Yes. International visitors can apply for a departure tax refund when they buy eligible goods from designated tax refund stores in China and take the goods out of the country when leaving.

Clients should keep the invoice, tax refund form, passport or travel document, and the purchased goods for customs verification.

Clients need to shop at designated tax refund stores in China.

These stores usually display a tax refund sign or logo. They are often located in major shopping malls, department stores, commercial streets, tourist areas, airport shopping zones, and popular retail districts in major cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Xi’an, Chengdu, Hangzhou, and Suzhou.

Travel agents should remind clients to ask the store before purchase whether the shop provides departure tax refund service.

China’s departure tax refund rates are mainly 11% and 8%.

The 11% refund rate usually applies to goods with a 13% VAT rate.

The 8% refund rate usually applies to goods with a 9% VAT rate.

After the tax refund agency charges a service fee, the actual refund received by the traveler is usually about 9% or 6% of the invoice amount.

International visitors usually need to spend at least RMB 200 at the same designated tax refund store to apply for a departure tax refund.

This makes the policy useful not only for luxury shopping, but also for ordinary purchases such as souvenirs, tea, silk, handicrafts, local products, and gifts.

Yes. If the refund amount is RMB 20,000 or below, clients may usually choose cash refund or bank transfer.

If the refund amount is more than RMB 20,000, the refund is normally paid by bank transfer only.

Travelers should check the available refund method at the airport, port, or tax refund agency before departure.

The basic process is:

Shop at a designated tax refund store.

Ask the store for the invoice and tax refund documents.

Keep the purchased goods unused and available for inspection.

Before leaving China, present the goods, passport or travel document, invoice, and refund documents to customs.

After customs verification, complete the refund at the tax refund agency.

Some cities, such as Beijing and Shanghai, also offer “buy and refund immediately” services at selected stores, but travelers still need to complete final departure verification.