China’s “Buy and Refund Immediately” service for foreign travelers has reached its one-year anniversary of nationwide implementation, reporting a rapid expansion in the scale of tax refund operations. The State Taxation Administration announced on April 27 that the measure, launched in April 2025, was designed to optimize the consumption experience for international visitors and align with national decisions to promote consumption.
Significant Growth in Inbound Consumption
Over the past year, the “Buy and Refund Immediately” initiative has significantly stimulated the vitality of inbound consumption. The number of people utilizing the service nationwide has increased by 12.96 times year-on-year.
Financial metrics have seen a similar surge, with both tax refund sales and total refund amounts growing by 9.35 times compared to the previous year.
How the “Buy and Refund Immediately” System Works
The service operates in regions where tax refund policies are already in place. When foreign travelers purchase eligible items at participating stores, they sign an agreement and provide a credit card pre-authorization.
Once these steps are complete, travelers can claim an amount in RMB equivalent to the tax refund directly at the store. This immediate access to funds is intended to encourage secondary consumption during their visit.
Broader Economic Implications
Fan Yong, Dean of the School of Public Finance and Taxation at the Central University of Finance and Economics, noted that the implementation of this service is a key result of the ongoing optimization of the international business environment. He suggested that the measure has effectively stimulated inbound consumption and objectively helped domestic brands reach a global stage.
Future Outlook and Potential Enhancements
A representative from the State Taxation Administration indicated that the department may continue to refine tax refund policies in the coming period. Possible next steps could include the expansion of service scenarios and the optimization of service processes.
These efforts are likely to focus on improving service quality and efficiency to better meet the needs of international shoppers, which could provide further support for high-level opening up and the expansion of inbound consumption.
Frequently Asked Questions
What is the “Buy and Refund Immediately” service?
It’s a system where foreign travelers in eligible regions can receive their tax refund in RMB on the spot at participating stores after signing an agreement and providing a credit card pre-authorization.
How much has the service grown in its first year?
The number of users has increased by 12.96 times, and tax refund sales and amounts have grown by 9.35 times. The number of participating stores has grown by over 100%, now exceeding 8,000.
What are the goals for the next phase of this policy?
The State Taxation Administration intends to continue implementing the policy by potentially expanding service scenarios and optimizing processes to better serve foreign travelers and support high-level opening up.
Do you think immediate tax refunds are a primary motivator for international tourists when choosing a shopping destination?
