CN Value-added tax (VAT) Refund Calculator China — Getting a Value-added tax (VAT) Refund

General VAT Rate Min. Refund Threshold Local Currency
17% €500.00 Yuan Renminbi (CNY)

Fully Digital VAT Refund

The VAT refund process in China isn't digital, and requires paperwork.

Refund Kiosk Availability

There are no VAT refund kiosks currently available in China.

Cash VAT Refund

In China, VAT refunds cannot be provided in cash.

Credit Card VAT Refund

In China, VAT refunds cannot be processed as a credit card refund.

China's main VAT rate is 17%, with other rates including 13%, 11%, 6% and 3% that can apply to certain transactions. and applies to most purchases of goods within China. A VAT refund may be available to visitors who qualify for VAT-free purchases in China.

Who qualifies for a China VAT Refund?

The VAT tax is meant to tax consumption of good within China, not goods exported to a foreign country. Therefore, China allows tourists and others who purchase goods within China for export to receive a refund of any VAT taxes paid.

In order to qualify to request a VAT refund in China, you must make at least €500.00 Euros worth of qualifying purchases.

How is my China VAT Refund Calculated?

Your total gross purchase amounts will be summed and rounded half-up to the nearest 0.01 Yuan Renminbi. From this total, the total amount of VAT refund will be calculated, based on the 17% standard VAT rate in China. For example:

€100 euros spent (incl. 17% VAT) = €85.00 base price + €15.00 VAT paid

In this example, you would receive an approximate tax refund amount of €15 on a total of €100 in purchases. As you can see, VAT refunds can be quite significant in China, especially if you're doing alot of shopping!

CN Value-added tax (VAT) Refund Application China VAT Refund Application Process

1.) Make Tax-Free Qualifying Purchases

When you make a qualifying purchase in China, you will receive a Tax Free Form from the vendor that records the purchases you made and the amount you paid. You will receive a separate Tax Free Form for each purchase.

The Tax Free Form may be a government form, or it may be associated with a particular sales tax refund processing company (like Global Blue or Premier Tax Free, shown here). Note that processing companies will collect a percentage of your VAT refund as a fee!

China does not require you to save the original purchase receipt, so the Tax Free Form is sufficient for applying for a VAT refund.

2.) Validate Your Tax-Free Forms

Your Tax-Free Forms must be export validated in order to be accepted for a tax refund. Validation confirms that the products have been exported from China, and will often be done in the airport as you leave the country.

You may be required to show your foreign passport, a plane ticket, and/or other proof that the goods you are buying VAT-free will be exported to a qualifying country. In China, export validation for VAT-free purchases is carried out by China's Customs department, who will provide a customs stamp to your Tax-Free Forms fo verify that the goods have been exported.

Private companies specializing in duty-free shopping (such as Global Blue, Premier Tax Free, etc.) are also allowed to validate tax-free purchases in China. These companies may have locations at or near China's major international airports.

3.) Receive Your VAT Tax Refund

Once you have validated your Tax Free Forms, you're ready to receive your VAT refund. If you used a refund processing company, you will be able to receive your refund by submitting the validated forms to a company refund desk at the airport, or via mail (most companies make pre-paid envelopes available for this purpose). If you did not use a processing company, follow the instructions on your tax free form to receive your refund.

  • EN: China VAT Refund
  • RU: China Возврат НДС
  • CN: China增值税退税

Learn More About China's VAT

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** This Document Provided By SalesTaxHandbook **