Yes, tourists in South Korea pay a 10% Value Added Tax (VAT) on most goods, but they are eligible for refunds on purchases made at certified "Tax Free" stores. Visitors staying less than six months can reclaim 5-8% of the VAT, typically requiring a minimum spend of 15,000 KRW.
Korea's Tax Free System can largely be divided into “Duty Free” and “Tax Refund.” Read on and find out how you can receive tax benefits while shopping in Korea! In duty free shops, taxes are not applied on the retail price, including Value Added Tax (VAT) and Individual Consumption Tax.
The only difference is that residents are taxed on their worldwide income, while non-residents are taxed on only their South Korea-source income. Some foreign employees in South Korea can opt to pay a 19% flat tax on their gross income instead of the standard tax rates.
The 4B movement is a lifestyle choice for women, rejecting four traditional expectations: marriage, childbirth, dating, and sex with men. The 4B ideology first emerged in South Korea around 2015, following the rise of 'Megalia', a radical feminist online community.
Paying INCOME TAX in Korea, Pension and Health benefits
How to get VAT tax back 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.
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) ...
While Singapore does not tax most foreign income, expats are liable for income tax on any income earned within the country. Taxable income is assessed for the calendar year preceding the Year of Assessment. For example, the Year of Assessment 2025 applies to income earned from 1 January to 31 December 2024.
There isn't one single "highest tax paying country" as it depends on the type of tax (income, sales, etc.) and income bracket, but countries like Ivory Coast, Denmark, Finland, and Japan consistently rank highest for top personal income tax rates, funding extensive social welfare systems. For overall tax burden on labor, Belgium often leads, while Scandinavian nations are known for high income taxes funding public services.
Value-added tax (VAT) is a 20% sales tax charged on most goods in the UK. Visitors from outside the EU were eligible for tax-free shopping until January 2021. Tax-free sales at airports, ports and Eurostar stations ended as of 1 January 2021.
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.
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.
In principle, tax-free goods should be carried as carry-on baggage rather than checked baggage. Upon departure, it is necessary to undergo inspection at the customs counter at the airport.
If you get audited and don't have receipts, the IRS can still accept other proof like bank statements, invoices, emails, mileage logs, and vendor records. But if you cannot reasonably verify your expenses, the IRS may deny deductions and add extra tax, plus possible penalties and interest.
Don Quijote (commonly known as Donki) is a Japanese discount megastore chain. Famed for its wide range of products, eccentric atmosphere, and low prices, the chain is popular among locals and tourists alike. Shoppers can find both essential items and high-end goods all at reasonable prices.
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.
Korea's Tax Free System includes "Duty- Free" and "Tax Refund" options. Duty-Free shops sell items without applying Value Added Tax (VAT) or Individual Consumption Tax. Tax refunds allow shoppers to buy items with tax included and claim a refund before leaving the country.
South Korea is one of the few countries that offers tax-free shopping for tourists, allowing you to reclaim up to 10% of the sales tax on many of your purchases.
On August 24, 2025, South Korea's National Assembly voted to approve amendments to the Trade Union and Labour Relations Adjustment Act (the “Act”), also known as the “Yellow Envelope Act.” The reform, long resisted by prior governments and business groups, expands the scope of who qualifies as an “employer,” broadens ...
Tourists in South Korea are subject to the same laws as locals. Some important laws to be aware of include the strict anti-drug policy, with severe penalties for possession or use of illegal substances. Smoking is prohibited in many public places, including restaurants, bars, and public transportation.
The Korean Lemon Act, which took effect in 2019, is a system that allows consumers to exchange and refund new cars if the same defects continue to occur within a certain period of time.
