China Tax Refund 2025: How Travelers Can Claim VAT on Drones and Other Products

On April 27, 2025, China implemented new departure tax refund policy that will enable overseas tourists to get a refund on purchases. Within weeks, refund transactions had jumped 116 % from the same time in 2024. High-tech products like smartphones and drones are now included, giving visitors more valuable options.Some airports, including Shanghai Pudong airport, also opened instant refund lanes where refunds can be made before boarding the plane. This is good for the tourists, and presumably makes your travel experience less frustrating, and more enjoyable. Shopping in China has become a new source of fun for traveling, offering more options and simplified process. Read on to find out the china tax refund you can claim and how you can gain from it on your next visit.

2025 Tax Refund Update: Transactions Surge 116%

China Tax Refund

Chinese departure tax refund further facilitates the shopping for foreign tourists. If travelers spend at least 200 RMB in the same store and take the unused goods with shopping receipts out of China within 90 days, they can apply for a tax refund. Items covered are clothing, cosmetics, jewelry and electronics. Food, booze and cars aren’t covered. Refund rate is by 11% or 8%, handled at airport counters after the customs have verified your purchase. As of April 2025, the instant refund business covered the whole country and the maximum cash refund amount was raised to 20,000 RMB in numerous ports, offering tourists an explicit and convenient shopping benefit.

Spending limits were reduced, items such as high-tech goods added and refund counters expanded from April 27, 2025. Transactions grew 116 percent in one month, indicating strong adoption from travelers. Now, visitors can buy their gadgets and souvenirs, get refunds more quickly and services in airports run with greater efficiency. The policy makes shopping in China easy, and once you have more value and less worry during your visit to a foreign land.

What Changed in the 2025 Departure Tax Refund Policy

Tax Free

Store Coverage and Refund Cap

Previously, the coverage had been restricted to a few big-city malls and luxury stores. Plenty of local options did not offer refund services, which presented opportunities for tourists. Today, over 5,000 stores nationwide—including those in malls, hotels, airports, and new complexes—gain approval within five working days, which ensures broader and faster access for everyone. The expansion of eligible stores for china tax refund is a huge improvement.

The limit on refunds also rose, from 10,000 RMB to 20,000 RMB, doubling the amount of big-ticket spending that would be eligible for a refund. Together with the use of several payment methods — such as mobile, card and cash — these changes point to China’s efforts on embracing modern refund services, enhancing the convenience for their foreign visitors where travelers who sought a tax refund will be much stronger, more robust compared the previous one.

Table: Optimization and Supply Enhancement of Tax Refund Shops

Adjusted Spending Threshold

Before that, the travelers were required to spend a minimum of 500 RMB in each store per day to be eligible, which led to large or grouped purchases. Many smaller transactions, such as a single tea set or scarf, failed to clear the bar. And the new threshold of 200 RMB reduces barriers and permits refunds for smaller, everyday purchases, which is more in line with how people actually shop. This is a casual shopper game changer. The new minimum amount for china tax refund on purchases makes more sense.

This change is aimed at making it easier for tourists to shop and boosting small boutiques across regions. Customers now offset their purchases with refunds paid on local crafts or specialty goods without having to spend more, while stores outside luxury malls benefit from the traffic. For travelers, it makes shopping a pleasant, nice thing to do as part of their journey.

Expanded Refund List

In the past, tax refunds were used to buy luxury goods like fashion, jewelry and cosmetics. Electronics and the daily-use tech it pulled in were left out, making it less attractive to many tourists. Now, the policy has expanded greatly. Products not only cover smart products, Chinese consumer brands and different forms of goods like specialty agricultural produce, handicrafts, creative cultural products, souvenirs with a certain geographical origin or sports products but also smartphones, drones, smart watches and small household appliances. The expansion is due to “modern consumption needs” and will also promote a more diversified shopping supply, said the State Taxation Administration. And the chi-tech fixation probably makes the china tax refund policy stand out even more.

Visitors, meanwhile, are encouraged by the reform to have more confidence when purchasing high-value or culturally specific items. Once reserved for high-end shops, which put out “Tax Refund Eligible” signs in their windows, there is now a push to entice more global travelers with offers of dollars back on everything from tech to tea, handicrafts to brand-name specialities. It’s this mix that makes shopping more fun, and also seems the best embodiment of what a souvenir should be. I bought a lovely tea set in Beijing, a purchase that couldn't be substantiated for a tax refund. Not to say there’s a china tax refunds the tourists can get for things like that, today.

How to Use Instant Tax Refund upon Purchase at Airports

Departure Tax Refund Counter at Shanghai Pudong Airport

Pilot Cities and Airports

Beijing Capital and Shanghai Pudong airports are in the forefront of the “Instant Tax Refund upon Purchase” roll-out as pilot locations. These two centers process huge numbers of international flights daily, making them obvious test beds for the new program. By being included, the majority of foreign visitors will be able to quickly experience the improved service.

Step-by-Step Process

The procedure in Beijing and Shanghai is quite well-defined, and each step requires relevant documents and forms.

Step 1: Purchase and Agreement

In an “instant refund” store, you sign an agreement form prepared by the merchant. Your credit card gets pre-authorized and the system logs a reimbursement request. You receive a hardcopy "Tax Refund Application Form" (退税申请表) and your receipt. An advance of the tax is then paid to you. In Shanghai, the department store will do it directly, or by exchange institutions for refund sums of 1,000 yuan or more. In Beijing, at a centralized tax refund place.

Step 2: Customs Inspection

At the time of departure, passengers should take their goods to be checked by Customs along with their invoices (发票), Tax Refund Application Form (退税申请表) and passport. Customs checks the goods and confirms this by stamping the form – this is the official approval for the refund.

Step 3: Refund Agency Audit

The traveller presents all documents, after passing through the Customs office for stamping to the refund agency in the departure hall. The agency checks your form, invoices, and the Customs stamp. If everything looks good, they remove the pre-authorization and the advance you received becomes the final refund. If the totals don't match, they charge the amount back to your card. The agency can issue a "Refund Settlement Sheet" (退税结算单) as proof of the transaction. This is the last step towards receiving your china tax refund.

Step 4: Final Settlement

The refund agencies deliver regular reporting to and settle with the tax authorities. To ensure this process is sealed off, use an internal "Tax Refund Clearing Form (退税清算表)" to avoid causing tax related claims. This check ensures there are no advances/refunds outstanding under official policy.

Example of Electronics Tax Rebates

After the tax refund policy in China was issued, the difference of smart products price between local and the other countries’ market became very clear due to the new rebates. We compared prices for several products — including phones, drones, smartwatches and smart speakers — to show how much a tax refund might affect the bottom line of your high-tech purchase. I was surprised to see these figures myself. That is a very good reason to attempt a china tax refund while you are there.

Please note: Exchange rates are based on 1 RMB ≈ $0.14 USD and 1 HKD ≈ $0.13 USD. Actual prices and exchange rates may vary.

Where to Enjoy the Instant Tax Refund Policy

In April 2025, China expanded its “instant tax refund” services, making shopping refunds far more convenient for international visitors. In Beijing, Alipay-enabled refund counters were launched at three central points and recognized across both Beijing and Tianjin airports. Guangzhou created a “one order, one package” model in popular shopping districts, with 25 merchants in Taikoo Hui already providing instant refunds for travelers departing via Baiyun Airport. These steps mean tourists can now claim money back quickly, without worrying about long waits or complicated paperwork.

In Hangzhou, a pilot program for the country's first "one-click refund" service at silk stores lets customers complete the entire payout process in just two minutes. The program also expanded eligibility to airports in Ningbo, Wenzhou, and Zhoushan, in addition to Hangzhou Xiaoshan. Meanwhile, Fujian adopted a province-wide recognition system that enables travelers to process refunds from any store at multiple ports, including Fuzhou, Xiamen, and Quanzhou. Together, these updates show how the china tax refund system is becoming faster, broader, and more traveler-friendly, making shopping in China smoother and more rewarding for foreign visitors.

Table: The cities where you can enjoy the instant tax refund policy

Who Can Apply for Departure Tax Refund in 2025

Tax Refund

Confirm Eligibility

Traveler must have resided within Mainland China for 183 days or fewer.

Affects foreign nationals with valid passports or other lawful admittance documents.

Includes residents of Hong Kong and Macau with valid Home Return Permits or Mainland Travel Permits.

Mainland residents and foreign expatriates who spend more than six months in the country are not eligible.

Prepare Identification Documents

Foreigners: Original passport with valid visa or permit.

Residents of Hong Kong/Macau: Home Return Permit.

Taiwan residents: Mainland Travel Permit and Taiwan Identity Card.

No photocopies or electronic copies will be accepted.

Use Documents at Key Stages

Shop: Show original ID, prove identity in refund system and sign service agreements.

Customs inspection: Original ID, purchased goods, refund application form given to you by the store, original invoices for verification.

Refund agency: Present original ID, customs-stamped application form and invoices for verification. With confirmation, the pre-authorisation is cancelled or changed to a final refund payment.

Practical Tips for Tourists

Shopping Strategies

As you plan your shopping, combine online aids with on-the-ground observations. Use travel apps like Ctrip to find malls and outlets with tax refund services, while local lifestyle platforms like Meituan can help you discover popular shopping districts.

In Beijing, Wangfujing's luxury malls are well-known for being tax refund-friendly. In Shanghai, you can reliably check Plaza 66 and IFC Mall. Even outlets like Florentia Village clearly advertise their refund qualifications. If you happen to find a store with a "Tax Refund" logo without having done your homework, download apps for comparison shopping, but the most important step is to personally confirm the store will stamp your receipt before you make any purchases. Only a stamped receipt is valid at the airport counter.

Legal Rules

Consider refund-related apps as reminders, not substitutes. The China Customs WeChat mini-program helps you review the requirement of inspection, and Alipay can push notifications once a store uploads your application form. The basic rule is simple: you can't use your goods before you leave, and you must keep the original receipts. At the airport, customs officials can inspect your items and paperwork. They might deny you a refund if they discover, for example, that you've already flown your new drone. Resist the temptation to open packages, organize your invoices and let apps remind you of what you have left to keep the shock at checkout minimal. This will ensure that you do not face any hiccups during a china tax refund.

Note:

The official China Customs WeChat Mini Program does not have a separate website link. You need to access it directly inside the WeChat app.

Open WeChat → tap “Discover” → “Mini Programs” → search for “中国海关” (China Customs) or “中国海关旅客指尖服务.”

Product Choices

E-commerce apps can be used not just to buy but to research. Platforms like JD.com and Taobao Global display real-time prices and indicate which products are eligible for a refund under the April 2025 reform — they now include smartphones, drones and wearables. Compare in-city deals with airport duty-free options based on this data. For larger discounts, add mall shopping to airport duty-free purchases at departure airports. Airline apps and platforms like Ctrip also reiterate carry-on restrictions to travelers — especially for power banks and lithium batteries. Mixing in these digital tools with smart planning can provide a better trip, and an easier refund process. Receiving a china tax refund is a major element of that impact.

Nervous about using your card or phone abroad? See How Do Foreigners Pay in China: Your Cashless Survival Guide 2025

FAQ: China Tax Refund 2025 Common Questions

Q: Are there any weight or model restrictions for getting refunds on drones?

A: There are no firm official limits, but some shops may be reluctant to sell you an oversize drone. Staff may even bring up carrying problems and tell purchasers to size confirmation before buying. For more sophisticated and large-scale models, you should ask the store staff directly to avoid any surprises at checkout. I actually saw a tourist in Shanghai compare the size of a drone box at a store to be certain. It is always good to be ready for the basis of china tax refund.

Q: Can I select dollars or euros for a refund?

A: Some airports offer foreign currency refunds, and I have seen signs advertising dollars or euros. The exchange rates and fees vary, and travelers should verify the rate before selecting one. I remember once seeing a tourist at Pudong eyeing the rate sheet and shifting their choice right then. Another traveler I met at Beijing Capital said they liked euros for a better rate that day.

Q: Is it necessary to have checked luggage for refunds?

A: Customs officers might want to check high-value items, such as drones or laptops. Travelers have said security asked them to open their carry-ons or show invoices. While preparing for pre-inspection doesn't always work, it can help you avoid a delay. Have your items and receipts ready. I saw a couple at Guangzhou Baiyun open their drone case in front of an officer to prove it was unused.

Q: Do I need a Chinese cellphone number to get mobile refunds?

A: You don’t necessarily need a local number, but attaching an international Alipay or international WeChat makes it a bit more seamless. I've seen a tourist at PEK use his foreign-registered account without trouble. If you rely only on cash, there will be longer waits and mobile refunds seem to streamline things. One traveler said he received his refund on Alipay before reaching the boarding gate. A mobile payout for a china tax refund may be the most straightforward.

Q: Are drone batteries complicating refunds or flights?

A: Eligibility for a refund remains the same, but additional restrictions by airport safety rules apply to spare batteries. Frequently airlines limit battery size, and sometimes quantity. I once saw security personnel looking closely at battery labels during the check-in process. Tourists should bring their own batteries in accordance with flight rules. At Shenzhen Airport, a friend had to abandon an extra-large battery right after their refund was approved.

Q: Are smaller cities even able to refund?

A: Refund counters are available in tier-one cities like Shanghai or Beijing. Service is less available from smaller hubs, though that situation may evolve. A friend had said there was no counter in Kunming, but that it did have one in its main terminal and Chengdu. Ensure you check in advance so as not to be disappointed. At the Xi’an airport I once spotted a sign advertising counters, though tourists were complaining that staff informed them it was not yet operational.

Q: What if I lose my slip for a refund?

A: Most slips are irreplaceable, but there are some systems that permit passport-based recovery. One traveler at Shanghai Hongqiao said staff assisted in recovering their record digitally. But it certainly can’t hurt to take good care of your slips and digital invoices — store them in a safe place and make backups on your phone. I also heard of one person in Beijing successfully showing her email invoice when she was missing the paper copy.

Q: Can I fly the drone after refund?

A: Refunded items should be unused before leaving China or customs will not approve. I have seen officers require tourists to present the sealed boxes before boarding. Save the unboxing for later, as trying it out in advance could mean forfeiting your refund. One traveler once quipped that after they opened a drone at the airport, it felt as if waving goodbye to their refund slip.

Q: Are refund scams a risk?

A: Yes, there are scams in unlicensed shops promising fake refunds. I saw a tourist vent on a forum about having had to pay extra and receiving no refund. Always check the shop’s registration sign and ask staff to show their official code. In a market area of Shanghai, I witnessed volunteers directing tourists away from stalls which did not display the official logos.

Q: What new products would be added?

A: Officials are yet to share updates, but locals are hoping for smart home gear and wearables. Tech stores are already advertising these as perhaps the next entries. Should that happen, tourists may soon find refunds for other everyday gadgets. When visiting a Xiaomi store I was told that their smart lamps could be the next ones in line. Any time I can get a china tax refund on more items is a plus!