July 2026 update: Paperless tourist VAT refunds from 1 September 2026
China’s State Taxation Administration has confirmed that the departure VAT refund process for overseas tourists will become paperless from 1 September 2026, replacing the current paper-based processing with electronic transmission of refund applications and sales invoice information.
The changes are intended to:
- eliminate paper refund documentation;
- speed up processing at airports and other departure points;
- support nationwide use of digital refund service codes;
- integrate with China’s expanding instant (“refund upon purchase”) VAT refund programme; and
- support pilot schemes for online duty-free and tax-refund shopping.
May 2026: continued rollout of real-time tourist VAT refunds to boost inbound spending
China is further expanding and simplifying its tourist VAT refund regime as part of efforts to boost inbound tourism and consumer spending.
New measures announced by the Chinese Ministry of Commerce and other government agencies on 12 May 2026 build on China’s major April 2025 launch of its instant VAT refund mechanism for foreign tourists.
The 2025 reforms marked a major shift away from the traditional “refund upon departure” model. Eligible foreign visitors shopping at authorised tax-free retailers can now receive VAT refunds immediately at the point of sale instead of waiting until leaving China.
The scheme was initially piloted in Shanghai, Beijing, Guangdong, Sichuan and Zhejiang before expanding nationally. Further rollout continued during 2025, including the addition of Jilin province and Inner Mongolia from November 2025.
July 2026 reforms simplify customs checks
China is now introducing additional simplifications from 1 July 2026.
Customs authorities will move to random inspections for VAT refund claims involving purchases below CNY 10,000 (€1,280 / $1,467), replacing mandatory checks for every application. Larger claims will still require full customs verification.
The authorities expect the changes to reduce queues and waiting times at airports and ports.
China will also expand the number of authorised VAT refund stores across tourist attractions, shopping districts and transport hubs, while increasing paperless processing and digital refund procedures.
Tourists using instant “refund upon purchase” services will now be able to complete customs formalities at departure points rather than at the retailer itself. Travellers will have 28 days to leave China and validate their refund claims.
The reforms follow strong growth in tax-free shopping activity during 2025, with Chinese officials reporting a 367% increase in VAT refund applications and nearly 40% growth in inbound consumer spending.
China increasingly appears to view VAT refunds as both a tax simplification measure and a broader economic stimulus tool for tourism and retail growth.
