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Tax Refund Policy for Overseas Travelers Departing from China

Tax Refund Policy for Overseas Travelers Departing from China
Tax Refund Policy for Overseas
Travelers Departing from China
@Foreign friends:don’t forget to claim your tax refund when shopping in China.
China has recently further optimized its departure tax refund policy for overseas tourists,offering more stores and products, and making the tax refund process more convenient.
Questions
Where to shop to get a tax refund?
Purchases made at stores with the “Tax Free” sign are eligible for a tax refund upon departure.
2.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.
3.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.
4.How to calculate a tax refund amount?
Amount of the tax refund = sales invoice amount (including VAT) of the tax - refundable goods x tax refund rate - service fee charged by tax refund agencies for processing the tax refund.
How to calculate a tax refund amount?
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.
6.How to apply for a tax refund?
7.How to claim a tax refund?
This year, China will significantly expand 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.
What if there are too few tax refund shops?
Don’t worry. Recently, China’s Ministry of Commerce and five other departments issued a notice to expand the coverage of tax-refund stores, providing overseas visitors with more shopping options.
Various regions are encouraged to establish tax-refund stores in areas with high overseas tourist traffic, such as major shopping areas, pedestrian streets, tourist attractions, resorts, cultural venues, airports, passenger ports, and hotels.