China has unveiled sweeping updates to its value-added tax (VAT) refund scheme for international tourists, rolling out instant refunds in additional locations and making the process smoother and more enticing for overseas visitors. The new policy—effective from July 1, 2025—marks a major departure from the previous refund-upon-departure model, allowing eligible tourists to claim cash back directly at participating stores and select refund counters, rather than navigating cumbersome airport procedures. This change aims to attract greater numbers of foreign tourists, boost retail spending, and revitalize the local economy after several challenging years for China’s tourism industry.
Thailand’s travel sector, along with outbound Thai tourists who regularly visit China, stand to benefit significantly from these reforms. For years, China’s VAT refund program lagged behind more established systems in destinations such as Japan, Australia, and the European Union, where instant point-of-purchase refunds are commonplace. Now, with China embracing direct in-store refunds—already available in cities like Shanghai, Beijing, and, starting July 2025, Dalian and Hubei province—the landscape for tourist shopping shifts dramatically. According to the official announcement from China’s State Taxation Administration (STA, April 2025), the country is expanding the instant tax refund service to dozens more duty-free shops, shopping centers, and airports nationwide.
The core of this new policy allows visitors from all foreign countries (including those from Hong Kong, Macau, and Taiwan) who reside in mainland China for less than 183 days before departure to claim VAT refunds of up to 11%—with the actual post-fee refund typically amounting to about 9% of purchase price—for eligible goods. Tourists must spend at least 200 yuan (approximately 1,000 baht) at a participating shop in a single day to qualify, and refunds can be requested on the spot, either in cash or through electronic payment platforms, at designated stores and tax-free counters (Travel Weekly Asia, April 2025). This immediate rebate replaces the older routine of collecting receipts and queuing at border checkpoints or airports for lengthy paperwork and refunds.
China’s embrace of instant refund technology also coincides with its efforts to digitalize the shopping and tourism experience. Many tax-free merchants now process claims electronically, further reducing friction for international shoppers. The digital process complements China’s already advanced mobile payments ecosystem—app-based transactions via Alipay and WeChat Pay are now often integrated with tax refund systems, making the process even more accessible for tourists accustomed to cashless spending.
Officials in China’s Ministry of Commerce have identified increasing foreign tourist arrivals and maximizing retail sales as dual priorities, particularly as the country recovers from pandemic-era restrictions and slowdowns (China Briefing, April 2025). By aligning its tourist tax policies closer with international competitors, China aspires to become a more attractive shopping destination. “This expansion of the instant VAT refund program is expected to significantly raise the spending power and shopping enthusiasm of incoming tourists,” said a senior official at the State Taxation Administration, as quoted in the official release.
For Thai travelers, the implications are clear and tangible: shopping for goods ranging from luxury fashion and electronics to souvenirs and specialty foods becomes more cost-effective. Large tour operators in Thailand have already begun recalibrating travel packages to emphasize shopping experiences in Chinese cities newly included in the refund scheme. The Tourism Authority of Thailand also anticipates reciprocal benefits, as the streamlined tax refund process may encourage Chinese tourists to seek similar privileges in Thailand, fostering healthy cross-border tourism competition and cooperation.
Historically, tax refunds for foreign tourists have played a pivotal role in shaping international retail travel. For instance, Japan’s system allows purchases of over 5,000 yen in a single day to be refunded immediately at the point of sale, while the European Union typically offers airport-based refunds for minimum purchases between 125 and 175 euros (Wikipedia: Tax Free Shopping). China’s new system is modeled after these best practices but seeks to overcome prior bottlenecks and build a digital infrastructure befitting its status as a global tech leader.
The move also holds important cultural significance: tourism shopping has always been a major motivator for Thai travelers visiting China—particularly during seasonal festivals, university holidays, and long weekends. With many Thais viewing purchases of gadgets, cosmetics, and branded goods in Chinese megacities as high-value opportunities, the new VAT refund scheme directly addresses pain points previously noted by frequent flyers and influencers across social media platforms. Thai tour guides and shopping concierges are already advising groups on how to maximize their rebates and avoid the long airport lines that once dampened the end of an otherwise exciting holiday in China.
What does the future hold for tourist tax refunds in China and Thailand? The ongoing integration of instant refunds with biometric ID verification, automated translation, and cross-border payment platforms may soon eliminate paper receipts and manual forms altogether. Chinese authorities are reportedly reviewing further expansions, with major southern tourist centers such as Guangzhou and Shenzhen likely to join the instant refund network later this year (TravelChinaGuide, April 2025). Additionally, as the flow of tourists between China and ASEAN nations picks up, competitive tax refund rates and retail promotions will play a larger role in shaping outbound itinerary choices for Thai holidaymakers, students, and business travelers.
Thai consumers considering travel to China in the latter half of 2025 should take practical steps to maximize these benefits:
- Plan shopping itineraries that focus on major malls and department stores now offering instant refunds;
- Pay attention to minimum spend thresholds and take note of the specific goods eligible for VAT refunds (some excluded categories may apply, such as consumables or personal use items);
- Retain valid identity documentation and travel records, as refund eligibility is tied to visa status and length of stay (less than 183 days in the mainland);
- Explore cashless refund options via mobile wallets for faster and safer transactions;
- Monitor updates from the Tourism Authority of Thailand and major travel agencies for the latest eligible location lists.
Ultimately, these developments reinforce a broader trend toward frictionless international commerce and tourism mobility in Asia. For Thai readers, the key takeaway is that China’s new VAT refund policy, now available instantly at point-of-purchase in expanding locations, makes cross-border shopping more advantageous and efficient than ever before. With proper planning and up-to-date information, Thai tourists and tour agencies can leverage these changes for richer travel experiences in China.
For more information about the new tax refund policy, eligibility, and the list of participating retailers, travelers are advised to check official announcements from the Chinese State Taxation Administration (official release), in addition to consulting reputable travel guides such as Travel Weekly Asia and TravelChinaGuide.