Lowered Minimum Tax Refund Threshold! Latest Announcement from 6 Government Departments

On April 27, the Ministry of Commerce and five other departments issued a notice titled "Further Optimizing Tax Refund on Departure Policies to Expand Inbound Consumption."

1. Expand the Scale and Coverage of Tax Refund Stores

Optimize the Distribution of Tax Refund Stores

Encourage regions to establish tax refund stores in large commercial districts, pedestrian streets, tourist attractions, resorts, cultural venues, airports, passenger ports, and hotels to expand coverage.

Actively guide international luxury brands, trendy domestic products, time-honored brands, cultural creative shops, souvenir stores, gift shops, and specialty stores to become tax refund stores.

Support qualified regions to create tax refund-themed commercial blocks.

Relax Requirements for Tax Refund Store Registration

Expand tax refund store registration eligibility to include businesses with tax credit ratings of A, B, and M, allowing newly opened stores to qualify if they meet other requirements.

Streamline the registration process: eligible stores can register with their local tax authorities, which must complete the process within 5 working days after receiving all documents.

Establish exit mechanisms for non-compliant stores and strengthen penalties for violations.

2.Enrich Tax-Refundable Product Offerings

Lower the Minimum Refund Threshold

Overseas tourists can apply for a tax refund if they purchase eligible items worth at least RMB 200 in a single store on the same day and meet other requirements.

Enhance Product Quality and Diversity

Guide tax refund stores to diversify offerings, including time-honored brands, premium Chinese products, smart devices, intangible cultural heritage items, handicrafts, geographical indication products, cultural creative goods, specialty products, and sports equipment.

Launch promotional campaigns like "Shop in China" to encourage cities to develop high-quality "city gifts" and "must-buy" products for tax refund stores.

3. Improve Tax Refund Service Efficiency

Streamline Tax Refund Procedures

Upgrade the tax refund management system to automate invoice data retrieval, entry, verification, and auditing.

Expand the "immediate refund upon purchase" service nationwide, encouraging more stores and agencies to adopt it.

Encourage regions to set up centralized refund points in areas with high tourist traffic, such as commercial hubs and scenic spots.

Support regions to implement sealed packaging and coding of tax-refunded goods to facilitate customs inspections without unsealing.

Customs may open packages for further verification if doubts arise during inspections.

Enhance Services of Tax Refund Agencies

Encourage regions to set reasonable service fees for tax refund agencies based on local conditions.

Improve evaluation systems for agencies and introduce competitive mechanisms.

Support agencies to collaborate with currency exchange counters and tourist service centers in departure zones.

Allow agencies to operate across regions and collaborate with other institutions.

Encourage agencies to work closely with stores on customer service, staff training, and promotions.

Improve Tax Refund Payment Options

Raise the cash refund limit to RMB 20,000.

Promote partnerships between refund agencies, payment providers, and clearing institutions to offer refunds via mobile payments, cards, or cash while managing risks.

Enhance Tax Refund Information Services

Develop a national tax refund information platform with inter-departmental data sharing, offering one-stop services like store locators and refund inquiries.

Strengthen promotional campaigns via flights, airports, media, social platforms, and travel agencies to raise awareness of refund policies and procedures.

Enhance inter-departmental collaboration to combat fraud and illegal resale of tax-refunded goods.

This notice takes effect immediately upon issuance.