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China streamlines tax refund system for inbound tourists

China has introduced eight new measures to optimize its departure tax refund system, effective July 1, 2026. Random inspections will apply to refund applications under 10,000 RMB ($1,468), while larger claims will still face individual checks. Paper receipts will no longer be required, and travelers can claim refunds at any departure point nationwide under the “instant refund” cross-regional settlement system. Over 8,000 stores offer the instant refund service — double the prior year — while total departure tax refund stores have reached 14,000 nationwide. From April 2025 to May 2026, departure tax refund applications surged 367% YoY, with refundable sales and refund amounts both up 90%.

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