New Updated: “Instant Tax Refund Upon Purchase” Service with Q&A

Tax Refund on Departure refers to the refund of Value-Added Tax (VAT) on eligible goods purchased by international tourists at designated tax-refund stores when departing from China.

International tourists are defined as foreign nationals and compatriots from Hong Kong, Macau, and Taiwan who have not resided in mainland China for more than 183 consecutive days.

“Instant Refund Upon Purchase” is an enhanced convenience measure under the Tax Refund on Departure policy. It allows international tourists to receive an advance cash payment (prepaid in RMB, equal to the refund amount) immediately at designated “Instant Refund” stores after signing an agreement and completing a credit card pre-authorization.

Eligibility Requirements for Tourists:

Meet all conditions under the Tax Refund on Departure policy.

Pass customs verification upon departure.

Depart from designated ports within the agreed timeframe stated in the agreement.

All goods eligible for the standard Tax Refund on Departure policy are also applicable to the “Instant Refund Upon Purchase” service.

Tax-refund stores in regions where the “Instant Refund” service is implemented may become “Instant Refund” stores by reaching an agreement with local tax refund agencies regarding advance payments and related terms.

The process involves three steps:

Step 1: In-Store Payment and Documentation

Sign an agreement with the store.

Complete a credit card pre-authorization (freezing funds equivalent to the refund amount).

Receive the Tax Refund Application Form for Overseas Tourists and the prepaid cash on-site.

Step 2: Customs Verification

Present the purchased goods, Tax Refund Application Form, sales invoices, and valid ID (e.g., passport) to customs during departure.

Step 3: Tax Refund Agency Review

If all conditions are met (e.g., timely departure via designated ports), the agency will release the credit card pre-authorization and finalize the refund. The prepaid amount is then treated as the final refund.

Submit the above documents to the tax refund agency in the departure port’s restricted zone.

The agreement is a legally binding document where the tourist:

Acknowledges their rights and responsibilities under the “Instant Refund” policy.

Commits to departing via designated ports within the agreed timeframe.

Agrees to the credit card pre-authorization as collateral.

The agreement must be signed by the tourist personally. Stores or agencies must retain signed copies as specified in mutual agreements.

A credit card pre-authorization temporarily freezes funds on the tourist’s credit card equal to the prepaid refund amount.

Processed by the store or tax refund agency.

The pre-authorization is lifted or charged by the local tax refund agency after verifying compliance with departure requirements.

The prepaid amount is an on-site cash or digital payment (in RMB) equal to the refundable VAT.

Funded upfront by the store or tax refund agency. Specific payment methods and limits are determined by provincial tax authorities, stores, and agencies.

Prepaid Amount = Actual Tax Refund Amount

Actual Tax Refund Amount is calculated as:

(Total Invoice Amount Including VAT × Refund Rate) – Agency Service Fee

If a tourist fails to depart on time or via the designated port:

The tourist may still claim a refund upon actual departure, subject to standard policy review.

The tax refund agency will charge the prepaid amount via credit card pre-authorization within 3 business days after the agreed departure date.