Foreign tourists traveling and shopping in Sanya. (Source: hinews.cn)

China has further enhanced its departure tax refund policies. A joint announcement from seven provincial-level tax authorities in Hainan Province, Hunan Province, Fujian Province (including Xiamen City), Guangdong Province (including Shenzhen City) and Guangxi Zhuang Autunomous Region, states that a cross-region mutual recognition system for the "Instant Tax Refund" VAT refund program for oveaseas visitors will start on July 1, 2026, in Hainan, Hunan, Fujian (including Xiamen), Guangdong (including Shenzhen) and Guangxi. This step aims to enhance the cross-regional shopping and tax refund experience for international travelers.

Under the new policy, eligible overseas travelers who get an advance payment matching their tax refund at a designated "Instant Refund" store or centralized refund point in any participating region can depart China through any authorized tax refund port within the five listed provincial-level regions and two listed cities during the specified period. They are no longer required to return to the original purchase location to finish refund procedures, providing cross-regional travelers with more flexibility in their shopping and travel plans.

Automated Tax Refund Kiosk. (Source: hinews.cn)

China's departure tax refund program is a VAT incentive offered to foreign visitors and residents from the Hong Kong and Macao SARs, and Taiwan Region, China. It enables eligible shoppers to request a refund of the VAT on qualifying purchases when they take eligible goods out of the Chinese mainland.

Previously, Guangdong, Guangxi, and Hainan had already launched a pilot program for cross-region mutual recognition. With the addition of Hunan and Fujian, the policy now covers a broader geographic area and is expected to foster stronger regional cooperation.

Analysts believe the expanded program will not only promote cross-regional tourism and consumer spending but also reflect China's continued efforts to advance high-level opening-up and create a more convenient and attractive international consumption environment.

Notes

Q: Why are Xiamen and Shenzhen listed separately?

A: In China's administrative and financial systems, Xiamen City and Shenzhen City are two of "municipalities under separate state planning". This means that while they are geographically within Fujian and Guangdong provinces, their local tax authorities operate with provincial-level autonomy and report directly to the national State Taxation Administration (STA). Therefore, they participate in this policy and joint announcement as independent, provincial-level entities.