China has updated its tax refund policy for foreign tourists, shifting from a refund-upon-departure model to a refund-upon-purchase model, the State Taxation Administration (STA) said on Tuesday.

Under the new refund-upon-purchase policy, foreign visitors can instantly claim value-added tax (VAT) rebates at tax-free stores, enabling them to reuse the refunded amount in real time for further shopping. Previously, VAT rebates were only available for withdrawal upon departure.

The policy change, initially piloted in Shanghai, Beijing, Guangdong, Shenzhen, Sichuan and Zhejiang, has now met all operational requirements for nationwide rollout, according to the STA.

An official from the STA emphasized their commitment to strengthening policy guidance and streamlining refund procedures.

Li Xuhong, vice president and professor at the Beijing National Accounting Institute, said that nationwide implementation of this service initiative would elevate China's tourism service standards and foster a "friendly, efficient and convenient" tourism environment. 

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