Mr. Li, a visitor to Wuhan from Hong Kong Special Administration Region, received refund-upon-purchase service at Wuhan Heartland 66 on July 8, 2025, the first to experience the service.

Refund-upon-purchase model allows overseas visitors to receive their value-added tax, or VAT refunds on the spot at the time of purchase, making the savings more immediate and tangible.

Departure tax refund policy in central China's Hubei Province was rolled out from July 2025. The policy allows overseas tourists to claim back value-added tax on eligible purchases made at designated tax refund stores before leaving China. 

On April 27 this year, China introduced a package of measures to optimize the policy, including measures lowering the minimum purchase threshold for refunds, raising the cash refund ceiling, expanding the network of participating stores, and broadening the range of products covered.

What is the Departure Tax Refund Policy?

Source from STA General Office

Overseas visitors can be refunded value-added tax (VAT) for the tax-refundable goods they purchase at tax-free stores when they leave China from ports of departure.

Overseas visitors who purchase tax-refundable goods at tax-free stores that provide the “refund-upon-purchase” service can claim tax refunds on-site at the stores after signing an agreement and completing a credit card pre-authorization. In addition to complying with existing regulations on the departure tax refund, overseas visitors enjoying the “refund-upon-purchase” service shall also meet the following conditions at the same time:

(1) Overseas visitors hold a credit card of his/her own with an operational pre-authorization guarantee;

(2) Overseas visitors promise to leave China within the prescribed time limit and from the designated ports.

Overseas visitors refer to foreigners and compatriots from Hong Kong, Macau and Taiwan Regions of China who reside in China's mainland for no more than 183 consecutive days before the date of departure.

Ports of departure refer to ports in regions where the departure tax refund policy is implemented, which are officially open to the public and within which tax refund agencies are established, including air transport ports, water ports and land ports.