Shopping and Tax Refund for Foreign Visitors
Shopping and Tax Refund for Foreign Visitors
Can tourists get a VAT refund in China?
China operates a departure VAT refund scheme for overseas visitors. A significant expansion took effect April 8, 2025: the minimum purchase threshold was cut from ¥500 to ¥200 per receipt at a single store on the same day, and a new instant refund at point of sale mechanism was introduced alongside the traditional airport-departure claim process.
Eligibility
- Overseas visitor staying in mainland China for no more than 183 consecutive days
- Minimum spend: ¥200 or more from a single participating store on the same day (source: china-briefing.com April 2025; visahq.com December 2025)
- Goods must be for personal use and taken out of the country unused and in original packaging
Refund Rate
The refund uses the formula: Refund = (invoice amount incl. VAT × refund rate) − handling fee.
In practice, most eligible goods attract 9–11% of the purchase price back (source: chinavigators.com; trip.com). The exact rate depends on the applicable VAT rate for each product category. A ¥1,000 purchase typically yields approximately ¥90–110 in refund after the handling fee.
Ineligible goods: services (hotels, restaurants, transport), food and beverages, tobacco, alcohol, and items consumed inside China. Most physical retail goods — clothing, electronics, cosmetics, watches, jewelry, luggage, sporting goods — are eligible.
Recognising Eligible Stores
Participating retailers display a “Tax Free Shopping” or “离境退税” sign at the entrance or checkout. Coverage has been expanded (April 2025) to include stores in major commercial areas, pedestrian streets, tourist attractions, resorts, cultural venues, airports, ports, and hotels. Not every store in these areas participates — look for the sign.
How do I claim a tax refund in China?
Path 1: Instant Refund at Point of Sale (新 — since April 2025)
At designated tax-free retailers (primarily in major cities and airports):
- Show your passport at checkout and request the VAT refund.
- The store processes the refund instantly — you sign an agreement and the store provides the refund amount in RMB immediately.
- A credit-card pre-authorization hold is placed on a card you provide as a deposit.
- At departure, present your goods, invoices, and ID at the customs kiosk for verification. If compliant, the hold is cancelled and the refund is finalised.
Shanghai alone had over 1,700 authorised instant-refund outlets as of late 2025, with electronic refund kiosks at all exit gates including Hongqiao Railway Station (source: visahq.com).
Path 2: Airport Departure Claim (Traditional)
For stores not offering instant refunds, or if you prefer to claim at the airport:
- At the store: request a VAT refund form (退税申请单). Store staff complete it using your passport details. Keep the form, receipts, and goods together.
- At check-in: check in your luggage as normal, but keep the refund items accessible for customs inspection.
- Before passport control: go to the Customs Declaration (海关) window. Present unused goods, completed form, and receipt. The customs officer stamps your form to validate it. Allow at least 45 minutes extra before departure for this step — queues can form, especially at busy airports.
- After passport control: find the Tax Refund desk (退税处) in the departure lounge. Present your stamped form, passport, and receipt.
Airports and Exit Ports with Tax Refund Desks
Refund desks operate at all major international airports (source: chinavigators.com; trip.com):
| Airport | IATA | Notes |
|---|---|---|
| Beijing Capital | PEK | Terminals 2 and 3 |
| Beijing Daxing | PKX | — |
| Shanghai Pudong | PVG | Terminals 1 and 2 |
| Shanghai Hongqiao | SHA | — |
| Guangzhou Baiyun | CAN | Terminals 1 and 2 |
| Chengdu Tianfu | TFU | — |
| Xi’an Xianyang | XIY | — |
| Shenzhen Bao’an | SZX | — |
Land border crossings and ferry ports also process refunds — check signage at your specific exit point.
Refund Payment Options
| Method | Speed | Limit | Notes |
|---|---|---|---|
| Cash (RMB) | Immediate | ¥20,000 per claim (source: china-briefing.com) | Some counters also pay USD or EUR — ask |
| Bank card (credit/debit) | 14–22 days | Required above ¥20,000 cash limit | Processed back to the card you present |
| Alipay / WeChat Pay | 3–5 days | Up to ¥10,000 (source: trip.com — verify at counter; limits may have been raised) | Scan the QR code at the refund desk |
Practical note: cash is simplest for small claims. For large purchases (luxury goods), card refund avoids carrying large amounts of cash through the airport. Set up Alipay before departure — see Mobile Payment.
Key Rules and Deadlines
- Validate your refund form at customs within 90 days of purchase
- Claim the refund at the desk within 30 days of customs validation
- Goods must be unused and in original packaging at customs inspection — do not open packaging or wear purchased items before leaving China
What are the customs duty limits when leaving China?
These are the limits when leaving China (what foreign customs at your destination impose is separate and varies by country):
| Item | Duty-free limit on exit from China |
|---|---|
| Personal goods generally | No outbound duty for reasonable personal-use quantities — China’s customs duty limits apply to incoming goods; what you buy and take out is your home country’s concern |
| RMB cash | ¥20,000 per person outbound (source: customs.gov.cn) |
| Foreign currency | USD $5,000 equivalent without a permit; larger amounts require a permit issued by an authorized Chinese bank — apply before departure |
| Tobacco | Up to 400 cigarettes, 100 cigars, or 500 g smoking tobacco duty-free on entry to China; outbound limits are set by your destination country |
| Alcohol | Up to 1,500 ml (alcohol content 12%+) duty-free on entry to China |
| Chinese medicinal materials | No more than ¥300 worth if taking to a foreign country |
Note on counterfeit goods: it is a legal risk in China to purchase counterfeit branded goods, and many countries (EU, US, UK, Australia) impose fines or confiscation at the border for importing them. Counterfeit goods are also excluded from VAT refund eligibility. See the scam-avoidance section in Emergency & Safety for market shopping tips.
Where should foreigners shop in China?
Luxury Malls
| City | Mall | Notes |
|---|---|---|
| Beijing | SKP (世贸天阶) | China’s highest-grossing luxury mall; all major international brands |
| Beijing | China World Mall (国贸商城) | Connected to major hotels; reliable English-speaking staff |
| Shanghai | IFC Mall (国金中心) | Lujiazui; strong tax-free store coverage |
| Shanghai | Plaza 66 (恒隆广场) | Nanjing West Road; high-end international brands |
| Shanghai | IAPM | Evening-focused; good for dining and mid-high range brands |
| Guangzhou | Taikoo Hui (太古汇) | Premier luxury mall |
| Chengdu | IFS / Taikoo Li | Upscale retail and dining hub |
Important: prices for international luxury brands in Chinese malls are generally 10–30% higher than in Europe due to import duties and consumption tax. For VAT refund purposes, the refund applies to the VAT component — the price differential relative to Europe may not fully close even after a refund.
Electronics Markets
| Location | City | What to Buy |
|---|---|---|
| Zhongguancun (中关村) | Beijing | Laptops, components, software, accessories — China’s “Silicon Valley” district |
| Huaqiangbei (华强北) | Shenzhen | Consumer electronics, phone components, accessories; very competitive prices; some grey-market goods — verify authenticity |
Huaqiangbei is the world’s largest electronics market district. Prices are competitive, but so is the presence of grey-market or cloned products. Buy from established multi-floor buildings rather than street stalls. Ask for a receipt (发票) — needed for VAT refund and for warranty claims.
Silk, Fabric, and Crafts Markets
- Silk Street (秀水街), Beijing — touristy; English-speaking vendors; convenient location near embassies; prices higher than local markets, but bargaining is expected
- Hangzhou and Suzhou — source cities for silk; specialist fabric markets with better quality and more authentic products
- Panjiayuan Antique Market, Beijing — weekend flea market; mix of genuine antiques, reproductions, and crafts; bargaining essential
- Yu Garden Bazaar, Shanghai — traditional crafts, tea, jade; tourist-oriented; prices are negotiable
Night Markets and Street Shopping
Common in Chengdu (Jinli Street), Xian (Muslim Quarter), Chongqing, and smaller cities. Night markets are primarily food-focused; some stalls sell crafts and souvenirs. Cash is standard; some stalls now accept Alipay/WeChat Pay QR. Bargaining is expected at non-food stalls.
Is bargaining expected when shopping in China?
Bargaining is expected and acceptable at markets, street stalls, and unlicensed small shops. It is not practised at fixed-price stores (department stores, chain shops, supermarkets, brand boutiques).
How to bargain:
- Start at 20–40% of the asking price and negotiate upward. Sellers quote high specifically to allow negotiation.
- Walk away slowly if the price isn’t acceptable — vendors often call you back with a lower offer.
- Once you agree on a price, you are expected to buy. Agreeing then refusing is considered rude.
- Useful phrases: Tài guì le (太贵了) — “Too expensive!” | Zuì dī duōshǎo? (最低多少钱?) — “What’s your lowest price?”
Scam to avoid: some vendors show you a high-quality item, then swap it for a lower-quality version when packaging your purchase. Check the item before you leave the stall.
How do I pay when shopping in China?
| Venue type | Accepted payments | Notes |
|---|---|---|
| Department stores / malls | Alipay, WeChat Pay, UnionPay, foreign Visa/MC (3-star+ venues per PBOC 2024) | Most tax-refund-eligible stores fall in this category |
| Markets and stalls | Alipay, WeChat Pay, cash | Foreign cards almost never accepted; mobile pay QR codes are universal even at small stalls |
| Street vendors | Cash, sometimes Alipay/WeChat Pay | Always carry ¥50–100 in small bills as backup |
For Alipay/WeChat Pay setup with a foreign card, see Mobile Payment. For cash withdrawal, see Foreign Exchange.
Quick Practical Tips
- Keep all receipts — you need the original receipt and the VAT refund form together at customs. Losing either means losing the refund.
- Allow 45 minutes extra at the airport for the customs stamp and refund desk process on departure day.
- Do not open packaging on purchased items until you have cleared customs at departure.
- Photograph your purchases with the receipt and tax form before packing — useful if anything goes wrong.
- For large luxury purchases, confirm the store is enrolled in the tax-free scheme before buying — ask for the 退税单 (refund form) explicitly; if they can’t provide one, they are not enrolled.
- Instant refund vs airport refund: if the store offers instant refund at point of sale, it is more convenient — but you still need to clear customs at departure to finalise it. Do not skip the customs step or the pre-authorization charge will be deducted from your card.
See Also
- Mobile Payment — Alipay / WeChat Pay setup for daily payments
- Foreign Exchange — Cash, ATMs, foreign-card POS use
- Emergency & Safety — Scam avoidance, counterfeit goods risk
Frequently Asked Questions
- Can foreign tourists get a VAT refund in China?
- Yes. Overseas visitors can claim a refund on eligible goods bought at tax-free (tuishui) stores, with a minimum spend of ¥200 per store per day, when taking the items out of China within 90 days.
- How do I claim the tax refund?
- Ask the store for a tax-refund form and keep the receipt, then process the refund at the airport customs/refund counter on departure. China has also rolled out an instant in-store refund at participating shops.
- How much is the China tax refund?
- The refund is roughly 11% of the purchase price after the service fee (from the 13% VAT). It can be paid to a card or via mobile payment.
- What can't I claim a refund on?
- Consumables already used, purchases below the ¥200 threshold, and goods not carried out with you generally don't qualify. Keep items unused and packed for possible customs inspection.