China's State Taxation Administration issued a notice on July 13, outlining new measures to improve the country's departure tax refund system.

The measures include paperless processing, expanded pilot services for online departure tax refund shopping, and new digital tools to make it easier for overseas visitors to claim tax refunds on eligible purchases before leaving China.

Paperless tax refund processing

One of the biggest changes is the introduction of paperless tax refund processing.

Tax refund stores will be able to issue electronic tax refund application forms and electronic sales invoices for eligible goods, rather than paper documents.

If the system indicates that verification is required, overseas visitors can present their valid identity documents, purchased goods, and electronic documents for online verification.

If the system indicates that no verification is required, Customs does not need to conduct verification.

During the refund review, tax refund agencies will also be able to process applications online using visitors' valid identification and electronic documents.

Note: Overseas visitors who prefer paper documents can still request them from tax refund stores.

Easier refund-upon-purchase across different cities

Starting Sept 1, 2026, China will also simplify its refund-upon-purchase service.

When issuing refund-upon-purchase application forms, tax refund stores can upload the overseas visitor's valid ID, allowing the tax refund agency in the shopping city to review the tax refund documents online.

When the visitor leaves China, the departure tax refund agency at the departure location will verify the visitor's identity and complete the refund process in accordance with existing rules.

Online shopping added to tax refund pilot program

Meanwhile, the State Taxation Administration is expanding a pilot program that allows online stores to participate in the departure tax refund system.

Tax refund stores with the required system connection capabilities will be able to sell refundable goods online to eligible overseas visitors and provide related services.

New nationwide tax refund service QR code

In addition, China will introduce a nationwide tax refund service QR code.

Overseas visitors will be able to scan the QR code to enter the information required for tax refund processing, view their electronic application forms and sales invoices, and check the status of their refund.

Tax refund stores will also be able to scan the QR code to retrieve information visitors have already entered, helping them complete tax refund application forms more quickly.

During Customs verification and the refund review process, Customs officers and tax refund agency staff can also access the visitor's electronic tax refund application by scanning the same QR code.

Source: Shanghai Municipal Tax Service of the State Taxation Administration