China has updated its tax refund policy for foreign tourists, shifting from a refund-upon-departure policy to a refund-upon-purchase model, the State Taxation Administration stated.

The STA said on Tuesday that under the new refund-upon-purchase policy, foreign visitors could instantly claim Value Added Tax rebates at tax-free stores.

It said the policy would enable tourists to re-use the refunded amount in real time for further shopping.

The STA said that VAT rebates were previously available only for withdrawal upon departure.

It said the policy change, initially piloted in Shanghai, Beijing, Guangdong, Shenzhen, Sichuan and Zhejiang, had now met operational requirements for nationwide rollout.

STA emphasised their commitment to strengthening policy guidance and streamlining refund procedures.

Li Xuhong, the Vice-President and Professor at the Beijing National Accounting Institute, said that the nationwide implementation of the policy would elevate China’s tourism service standards.

Xuhong said the implementation would also foster a “friendly, efficient and convenient” tourism environment.

(Xinhua/NAN)