In southern China, Guangdong province, excluding Shenzhen, is launching a tax refund service for overseas tourists, including those from Hong Kong and Macau.
According to the Department of Finance of Guangdong Province, tourists who stay in Mainland China for less than 183 days will be entitled to a 11 per cent rebate on goods bought with value-added tax (VAT) at designated department stores, while 2 per cent of the tax will be deducted as a handling charge.
The minimum purchase is 500 renminbi (US$75) a day from one designated store. The refund is valid only when the purchase is made within 90 days of departure. Tourists can claim the refunds from Guangzhou Baiyun International Airport, Guangzhou Nansha Port and Jiuzhou Port in Zhuhai City. Other ports and stores will be added gradually.
Official data shows the province has the largest number of tourists visiting mainland China, recording 105 million arrivals last year – 78.5 per cent of total tourists to the mainland. These figures include 6.6 million foreign tourists. Tourists from Hong Kong, Macau and Taiwan reached 98.56 million, accounting for 91.4 per cent of total tourists in China.
On January 1, 2011, a pilot tax refund program was launched in Hainan province in January 2011, and Beijing and Shanghai rolled out the policy in July last year.