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China Expands Instant VAT Refunds to Boost Tourist Spending

  • China is expanding and simplifying its tourist VAT refund system to encourage inbound tourism and spending.
  • New measures announced on 12 May 2026 build on the April 2025 launch of instant VAT refunds for foreign tourists.
  • The reform replaced the old “refund upon departure” model, allowing eligible visitors to get refunds immediately at authorized tax-free stores.
  • The scheme was first piloted in several major regions and then expanded nationwide, with further additions in late 2025.

Source: vatcalc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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