MKsport2024. Photo: VCG" src="https://www.globaltimes.cn/Portals/0/attachment/2024/2024-06-20/c6329368-0b69-41da-8086-2e3c8155f30f.jpeg" />

Foreign tourists wait in line at the Palace Museum in Beijing on May 21,2024. Photo: VCG 

China officially launched the nationwide rollout of a new tax refund policy for foreign tourists. According to the State Taxation Administration (STA), the reform replaces the traditional "refund-upon-departure" model with a more streamlined a "refund-upon-purchase" mechanism, Xinhua reported.

"Foreign tourists can now receive their refund at the time of purchase," the STA explained, "after completing a credit card pre-authorization." Customs will then verify the traveler's identity and goods upon departure, at which point the pre-authorization is released and the transaction officially concluded.

Under this upgraded mechanism, eligible foreign tourists can now instantly claim value-added tax (VAT) rebates at designated tax-free retail stores by completing a credit card pre-authorization. The refunded amount is immediately available at the point of purchase, allowing tourists to reinvest those funds into additional spending during their stay. 

The new model is not only convenient but also significantly amplifies the consumer experience, giving travelers greater flexibility and purchasing power during their visits, the report said.

The policy was initially piloted in five major provincial-level regions - Shanghai, Beijing, South China's Guangdong Province, Southwest China's Sichuan Province, and East China's Zhejiang Province. It has now met all technical and procedural requirements for full-scale national adoption, Xinhua reported.

Tax authorities have reiterated their commitment to optimizing implementation. "The STA will continue to strengthen policy interpretation and guidance, improve system functionalities, and streamline refund processing," an official said, according to the report.

Experts see broader implications for China's tourism sector. Li Xuhong, vice president and professor at the Beijing National Accounting Institute, said the nationwide rollout of the policy will significantly elevate China's international service standards. "It will help further foster a friendly, efficient and convenient tourism environment," Li noted, according to Xinhua.

Global Times