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  • Good News! Refund Policy for Overseas Visitors

    Post by : expatree
 
 
More or less, Chinese tourists overseas have been able to enjoy VAT refund benefits when shopping on holidays. Now all of overseas visitors in China can cheer for this kind of benefit as it has been officially announced last week by the Ministry of Finance that, If overseas visitors meet the requirements while they are shopping, these consumers definitely can get 11% VAT refunded.
 
The purpose of VAT refund policy is obviously to attract more and more foreigners to China for travelling and shopping. They hope the tax cuts will act as a stimulant to further economic growth. China has tried to align with international standard on the refund issues, while it is approaching the trend of economic development and somehow internationalization.
 
As an oversea visitor, we are interested in this policy requirement, now let’s explore it in more detail.
 
Firstly, it is indicated that the visitor who comes from foreign countries including Hong Kong, Macau and Taiwan, has to remain in China with less than 183 successive days in order to be legible for this VAT Refund.
 
Secondly, with the exception of the articles restricted from exportation by customs and already VAT free items in the shop, all purchased items are allowed to have a VAT refund application.
 
Thirdly, the minimum consuming amount is 500 RMB per shop a day under one consumer name. In addition, the item needs to be new and unused and the duration between departure flight date and current day should be less than 90 days. As mentioned, the VAT refund rate is 11% of the selling price and the refunded currency is only limited to Chinese YUAN at this moment. It’s strongly recommended to make use of the VAT refund authorized shops as it is not widely spread yet. If the refunded amount is less than 10,000 RMB, you can choose from various payment options such as cash return or bank transfer, however once it exceeds 10,000 RMB, it’s limited to bank transfers.
 
Last but not least, don’t forget to ask the shop for the “Refund application form” (see below) and “Chinese invoice (Fapiao)”, you have to complete this form then report refund items and its invoice to Chinese customs for final approval when you are leaving the country. Of course, some certificated agency is allowed to help you with the refund application, but it might charge a small service fee.

 
We hope this article has proven to be informative. Hopefully this has brought your attention to a new system introduced to China that might benefit your visit to China. If you are still lost in the jungle, be free to contact info@expatree.com, Expatree team is always ready to sort it out. 
Date:2015-01-29 22:15:53
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