China streamlines VAT refunds for foreign travellers

It is shifting to a refund-upon-purchase model, the State Taxation Administration (STA) said.

That is a positive move for tourism, changing from the current refund-upon-departure model.

Foreign visitors will now be able to instantly claim VAT rebates at tax-free stores, allowing them to fund further shopping and tourism activities.

VAT rebates have up to now only been available when flying out of the country.

The policy shift was first trialled in Shanghai, Beijing, Guangdong, Sichuan and Zhejiang.

It is now set for a nationwide rollout, the STA says.

The STA says the streamlined refund policy will enhance the overall shopping experience for foreign visitors.