Hubei Province in Central China, and Dalian city in Northeast China's Liaoning Province will implement tax refunds for overseas tourists departing China, starting from July 1, 2025, after their plans receive approval from China's finance, customs, and tax authorities, according to a notice released by the Ministry of Finance on Monday.The ministry announced that Dalian and Hubei Province have obtained approval to implement the tax refund policy for overseas tourists upon departure, following the submission of implementation plans to the relevant authorities. Dalian and Hubei Province will commence policy enforcement on July 1, 2025, enabling eligible overseas visitors to claim value-added tax (VAT) refunds on purchases made in the two places.Data from the State Taxation Administration shows that, during the first month of policy implementation (April 27 to May 26), the number of tax refund shops increased significantly and the value of tax refunds grew markedly, helping attract overseas tourists to shop in China and stimulate inbound tourist consumption potential. And, nationwide, tax authorities processed 116 percent more tax refund applications for departing overseas tourists during the period, while sales at tax refund shops rose 56 percent year-on-year.As the 'instant tax refund' pilot program expanded nationwide, refund transactions increased 32-fold year-on-year while related sales grew 50-fold; 1,303 new tax refund shops were added, bringing the national total to 5,196 shops, which is 1.4 times the figure recorded at the end of 2024.

Hubei Province, Dalian city to implement VAT refunds for departing overseas tourists starting from July 1

Hubei Province and Dalian city in China will implement VAT refunds for overseas tourists departing from July 1, 2025, following approval from finance, customs, and tax authorities. The policy aims to boost tourism-related sales and tax refund applications, with data showing a 56% year-on-year increase in tax refund shop sales and a 116% rise in refund applications during the first month of implementation.