🧐 What is a Korean Tax Refund? When you shop in Korea, you pay something called VAT (Value Added Tax), which is 10% on most products. As a non-Korean tourist, you're actually entitled to get some of that tax refunded back to you, either at the airport or — in some cases — instantly in the store.
Immediate tax refund service has its own limitations: the amount of a single payment must be at least 15,000 won but less than 1,000,000 won, and the traveler must have spent no more than 5,000,000 won during the whole trip. Present your passport and ask for a tax refund upon making your purchase.
Customs Export Approval If goods are purchased within 3 months of departure, show purchased goods to the Customs Declaration counter and confirm tax refund slip. Refund After confirmation, take the tax refund slip to the tax refund service counter and receive refund.
Visit the kiosk in the departure hall to process your refund, and if the kiosk indicates that your items require customs inspection, submit your passport, purchased items (unopened and unused), and purchase confirmation to the customs desk for clearance.
Special tax concession for foreigners working in Korea
A foreign expatriate or employee can choose the 19% flat tax rate as a monthly employment income WHT rate with submission of an application to Korean tax authorities.
Ultimate Guide to Tax Refunds for Foreign Tourists to Korea
What is the 52 hour rule in Korea?
Weekly Work Limit: 52 Hours
Despite the 40-hour workweek cap, South Korea's labor law permits employees to work more than 8 hours in a day without violating the law, as long as the total weekly working hours do not exceed 52 hours. This system gives businesses flexibility.
Claiming back VAT involves completing a VAT Return – usually each quarter. If completing the VAT Return form online on HMRC's website, you must enter how much VAT your business was charged in that three-month accounting period for goods and services you are able to claim VAT on. This is known as input VAT.
How long does it take to get your tax refund in Korea?
Credit Card: Tax refunds are issued within 2 to 3 weeks after the purchased items are declared to customs. Alipay: Tax refunds are issued in real-time as soon as the purchased items are declared to customs. WeChat Pay: Tax refunds are issued within 1 to 2 days after the purchased items are declared to customs.
The stages of an IRS refund are: (1) Return Received, where the IRS acknowledges receipt of your return; (2) Return Reviewed, where the return is checked for accuracy; and (3) Refund Approved/Sent, where the refund amount is finalized and issued.
Lotte Mart Zettaplex Seoul Station provides instant VAT Tax Refund over the tax free cashier counters for taxable purchases over ₩30,000, currency exchange kiosks and lockers (free for 1st 3 hrs) service.
Do I have to show my tax-free items at the airport?
At the time of departure, you must present your passport and purchased items to customs. Please note that if you do not possess the tax-free items at the time of departure, consumption tax will be charged by customs.
What is the process for claiming VAT refunds in Korea?
You can receive either credit card refund, including Alipay and WeChat Pay, or immediate cash refund at tax refund booths in major city downtowns. To receive tax refund at a downtown refund booth, present your purchased goods, VAT refund receipt, passport, and international credit card.
We are pleased to announce that tax refunds are now available for hotel stays at SOTETSU HOTELS THE SPLAISIR SEOUL MYEONG-DONG from January to March 2026! Tax refund procedures cannot be completed after returning to your home country. Previous tax refunds cannot be claimed during your next visit to Korea.
However, as of January 1, 2021, the UK government discontinued the VAT refund scheme for tourists. For many visitors, this decision ended an era of cost-effective shopping in Britain. No longer can tourists claim refunds on the 20% VAT added to most items, which has left a noticeable gap for budget-conscious travelers.
Can I claim VAT back even if I'm not VAT registered? No. In general, you must be VAT registered to claim for VAT on the goods and services you've purchased for your business. However, while non-VAT registered individuals cannot reclaim VAT on most business expenses, there are a few exceptions.
For any significant purchase, even at a boutique shop, it's always worth asking about a VAT refund. The precise details of getting your money back will depend on how a particular shop organizes its refund process. In most cases, you'll present your refund documents at the airport on the way home (explained later).
VAT is levied at a rate of 10% on the supply of goods and services, except zero-rated VAT on certain supply of goods and services (e.g. goods for exportation, certain eligible services rendered to non-residents or foreign corporations earning foreign currency, international transportation service by ships and aircraft) ...
To request a refund, claimants must send an electronic refund claim to their own national tax authorities, who will confirm the claimant's identity, VAT identification number and the validity of the claim. The request will then be forwarded to the Member State where VAT was incurred.
All you have to do is bring your passport and plane ticket with you (or remember your flight number), buy what you want, and pick it up on the day of your departure at the airport gates. Further discounts abound with certain credit cards and VIP benefits. Read on for more details on duty free shopping in Korea.
- If you scan your passport at the refund kiosk (located in the Duty-Free Zone Floor 4, near Gate 26-27), the confirmed amount of tax refund will be issued. - In the case of a large refund or if you do not want a refund in cash, you can receive a refund through a credit card in your personal possession.
In addition, local income tax of 10 percent of the total income tax amount is assessed. However, foreign expatriates can elect to apply a 19 percent flat tax rate (20.9 percent flat tax rate inclusive of local income tax) to total Korea-sourced employment income.
Immediate tax refund is a newer service provided to foreign visitors at over 440 branches of GS25. 25 of these branches also offer a currency exchange kiosk, to easily convert foreign currencies into Korean won.
