Sales Tax Refund for Visitors
Foreign visitors to Korea have the option of either applying for a sales tax (VAT) refund at the airport prior to departure or not paying the tax when making their purchase (immediate tax refund) in a tax free store.
In Korea, sales taxes are included in the purchase price of each product - VAT/sales tax (10%) and special taxes on high-priced goods such as jewellery, etc. Before paying, ask for a tax refund. The store will either not charge you the sales tax or will give you a tax refund receipt (and maybe an envelope) along with the regular receipt. Hold on to both receipts and fill in the information required on each of the refund receipts (full name, passport number, nationality and address) and sign at the bottom.
Eligibility for Tax Refund:
Goods must be purchased within 3 months of departure from Korea
Purchases must be:
- a foreign national who has been in Korea for less than 6 months (non-resident)
- an overseas Korean in Korea for less than 3 months
- a Korean student studying abroad for 3 or more years
Tax Free Stores in Korea:
There are more than 12,000 tax free stores around the countires. To find out if the store where you are shopping offers a VAT refund, check to see if any of the above logos is visible at the store or go online to any of the below tax refund services/organisations. You can also contact KTO's 1330 Travel Outline (+82-2-1330 - Korean, Japanese, English, Chinese)
CubeRefund: www.cuberefund.com (Korean, Japanese, English, Chinese)
Easy Tax Refund: www.easytaxrefund.co.kr (Korean, Japanese, English, Chinese)
Global Blue: www.globalblue.com (Russian, English, Chinese)
Global Tax Free: web.gtfetrs.com (Korean, Japanese, English, Chinese)
KT Tourist Reward: www.koreataxfree.com (Korean, Japanese, English, Chinese)
Immediate Sale Tax Refund:
1. Purchase, including VAT, must come to more than W30,000 and less than W200,000*
2. Tax refund only available on purchases under W1 million per visit to Korea*
2. Purchaser must show passport
*Airport refund system may be best option for purchases that exceed these amounts.
Sales Tax Refund at Airport/Port/Refund Tax Booth:
Visitors who have paid the sales tax on their purchase can get a refund of that tax at designated aiports and ports or at tax refund booth in other locations. Note that the service booths may only offer refunds in shops registered with their company (see logos above).
Process for Refund at International Airports:
1. Check in as your normally would getting your boarding pass but mention to the counter staff that you have tax refund items in your suitcase. The usual baggage claims sticker will be put on your suitcase before it is returned to you.
2. Bring the sales tax receipts, along with your luggage, to the Customs Declaration counter to get the receipts stamped. You may (or may not) be asked to show the purchases. Before leaving make sure each tax refund slip has been stamped. If one has been overlooked, you'll likely have to go back and get it done.
3. Once you have the "ALL GOOD EXPORTED" stamp from the customs official, you can take your luggage to the Oversized Baggage Counter for check-in.
4. After going through Immigration/Customs, head to the Tax Refund Counter for your immediate cash refund. Counters currently located
- on the Departure Level (3rd Fl) outside Gate 28 of Incheon International Airport
- on the 2nd Floor (right turn past Immigration) at Gimhae International Airport
Other international airorts and ports may not have a designated counter. They may, however, have a designated mailbox.
5. If there is neither a counter or mailbox, or if you didn't manage to go through the process in time to make your flight, you may be able to claim your refund by contacting the particular service provider directly (see above). Refunds usually credited to the purchasers credit card within 1-2 months.
Tax Refund Booths
The booths are often company specific. You can find a list of Tax Refund booths locations here (complete as of September 2016).
K4E Editor: We try to make the information on Korea4Expats.com as complete and accurate as possible, so if you notice any errors or omissions in the content above, please let us know at email@example.com.
Last Updated on 2017-01-03
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|Free Tours-Guides Seoul||Local English Tourism Websites|
|Sales Tax Refund for Visitors||Seoul Tourist Information Centers|
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