China has updated its tax refund policy for foreign tourists, shifting from a refund-upon-departure model to a refund-upon-purchase model.

Under the new refund-upon-purchase policy, foreign visitors can instantly claim value-added tax (VAT) rebates at tax-free stores, enabling them to reuse the refunded amount in real time for further shopping. Previously, VAT rebates were only available for withdrawal upon departure.

Tourists making purchases at designated stores like Deji Mall and IFC Center in Nanjing can receive their refunds on-site after completing a credit card pre-authorization.

If a foreign traveler fails to comply with the departure tax refund policy or the agreement signed with tax refund shops, exceeds the commitment period or does not depart from the designated port, the tax refund agency will recover the prepayment through credit card pre-authorization deduction.

Li Xuhong, vice president and professor at the Beijing National Accounting Institute, said that nationwide implementation of this service initiative would elevate China's tourism service standards and foster a "friendly, efficient and convenient" tourism environment.

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