China further optimizes departure tax refund policies to expand inbound consumption

China's Ministry of Commerce (MOFCOM), Ministry of Finance and four other departments jointly issued a notice on Sunday to further optimize departure tax refund policies, aiming to better meet the tax refund needs of overseas travelers, enrich market supply, improve refund services and boost inbound consumption.

Specific measures include expanding the number and coverage of departure tax refund stores. Local authorities are encouraged to establish more refund stores in major commercial districts, such as pedestrian streets, tourist attractions, resorts, cultural venues, museums, airports, passenger ports, hotels and other key locations, according to a statement released by MOFCOM.

More efforts will be made to guide international brands, trending domestic brands, time-honored brands, cultural and creative stores, souvenir shops and gift shops to participate in the tax refund program. Regions with favorable conditions are encouraged to develop tax refund-themed shopping districts.

The eligibility requirements for registering as a departure tax refund store will be relaxed. The registration process will be streamlined, allowing eligible stores to become tax refund stores once they file with local tax authorities, which must complete the registration process within five working days after receiving requirement. At the same time, a sound exit mechanism for tax refund stores will be established, and penalties for violations and misconduct will be strengthened, MOFCOM noted.

Besides, the supply of goods eligible for departure tax refunds will be further expanded. Overseas travelers can apply for departure tax refund if the amount of tax-refundable items purchased by them on the same day and in the same store reaches 200 yuan and other relevant regulations are met, according to MOFCOM.

Chinese authorities also pledged to further improve departure tax refund services. Efforts will be made to streamline the refund process, enhance services provided by tax refund agencies, optimize payment options and improve information services related to departure tax refunds.