China offers a Value-Added Tax (VAT) refund scheme for foreign visitors. If you do any significant shopping during your trip, you can recover a portion of the tax when leaving the country.
Who Qualifies
- You must be a foreign passport holder who has been in mainland China for no more than 183 consecutive days
- Residents of Hong Kong, Macau, and Taiwan also qualify under a separate scheme
- You must depart from a port that offers departure tax refund services (all major international airports do)
- Chinese citizens residing overseas do not qualify
What Purchases Qualify
All of the following conditions must be met:
- Minimum amount: At least 500 RMB spent at a single store on the same day. Multiple purchases from the same store on the same day can be combined. Purchases from different stores cannot be combined.
- Store must participate in the tax refund scheme. Look for a "Tax Free" or "退税商店" (Tax Refund Store) sign at the entrance or near the register. Not all stores participate — it is most common in department stores, shopping malls, and stores catering to international visitors.
- The goods must leave China within 90 days of purchase.
- Goods must be unused and in their original condition. Opened packaging does not necessarily disqualify you, but the item must be identifiable and clearly unused.
- The goods must be carried out of China by you personally — either in carry-on luggage or checked baggage.
What Does NOT Qualify
The following items are excluded from the tax refund scheme:
- Food and beverages
- Tobacco and alcohol
- Motor vehicles and motorcycles
- Gold, silver, and jewelry
- Items that cannot be carried as personal luggage
Refund Rates
The VAT rate on most consumer goods in China is 13%, but the tax refund scheme operates differently:
- Base refund rate: 11% of the purchase amount
- Agent handling fee: 2% (deducted by the refund agent who processes your claim)
- Actual refund you receive: 9% of the purchase amount
Example: If you buy a 1,000 RMB item, the refundable amount is 110 RMB (11%). The agent deducts 20 RMB (2%). You receive 90 RMB (9%).
The refund is calculated on the total purchase amount including VAT, not the pre-tax price.
Step-by-Step Guide
Step 1: At the Store — Request the Tax Refund Documents
When paying, tell the cashier you want a tax refund: "我要退税" (wǒ yào tuìshuì — "I want a tax refund"). Provide your passport.
The store will issue two documents:
- Tax Refund Application Form (离境退税申请单) — this is the key document
- Sales invoice (发票) — the standard receipt
Verify that your passport number and name are correct on the application form. Errors at this stage cannot be easily corrected later.
Step 2: Before Departure — Organize Your Documents and Items
Keep everything together:
- The Tax Refund Application Form
- The original sales invoice
- The purchased items (must be accessible — do not bury them at the bottom of your checked luggage)
- Your passport and boarding pass
Step 3: At the Airport — Find the Customs Tax Refund Counter
Arrive at the airport earlier than usual — add an extra 30-45 minutes to your normal arrival time. The tax refund counter is located before security in the departure hall, near the customs area.
At major airports:
- Beijing Capital (PEK): Terminal 3, near Customs, 4th floor departure level
- Shanghai Pudong (PVG): Terminal 1 and 2, near International Departures
- Guangzhou Baiyun (CAN): Near the International Departures entrance
Step 4: Present Items and Documents to Customs
At the customs tax refund counter:
- Hand over your Tax Refund Application Form, sales invoice, passport, and boarding pass.
- The officer may ask to see the purchased items. This is why the items must be accessible — if they are in checked luggage, you need to retrieve them.
- The officer stamps your Tax Refund Application Form.
For items in checked luggage: Tell the check-in counter agent that you have tax refund items in your checked bag. They will tag the bag but not send it through. Take the tagged bag to the customs tax refund counter, show the items, get the form stamped, then return the bag to the check-in counter to be loaded.
Step 5: Go Through Security and Find the Refund Agent
After security and immigration, locate the Tax Refund Agent counter in the departure lounge. Present:
- The customs-stamped Tax Refund Application Form
- Your passport
- Your boarding pass
Choose your refund method:
- Cash (RMB): Immediate — you receive RMB banknotes. This is the fastest option.
- Bank card refund: The refund is credited to a Visa/Mastercard. This takes 7-15 business days.
- Alipay: The refund is sent to your Alipay account. Fast — typically within 24 hours.
Step 6: Collect Your Refund
If you chose cash, the agent hands you the refund amount in RMB. If you chose bank card or Alipay, you receive a confirmation slip — keep this until the refund appears in your account.
