South China's Guangdong province will start to issue overseas tourists with tax refunds from July 1.
According to Guangdong department of finance, overseas tourists will enjoy VAT refunds at certain ports of departure on purchases from specific shops.
Foreign tourists and those from Hong Kong, Macao and Taiwan who stay on the Chinese mainland for fewer than 183 days are entitled to an 11 percent rebate on goods bought at designated department stores. Two percent of the VAT will be deducted as a handling charge, meaning this translates into a 9 percent rebate.
The minimum purchase for the rebate is 500 yuan ($75.20) at one store in one day. The refund is valid for purchases made within 90 days before departure.
The ports of departure covered by the scheme are Guangzhou Baiyun Airport, Guangzhou Nansha Port and Jiuzhou Port in Zhuhai City. The province plans to gradually increase the designated ports and stores.
A pilot tax refund program began on the southern island province of Hainan on Jan 1, 2011. Beijing and Shanghai rolled out the policy in July 2015. It has since been expanded to more destinations nationwide.
Guangdong is a major destination for inbound tourists. Some 105 million tourists entered China through Guangdong ports in 2015, accounting for 78.5 percent of the figure nationwide.