Is shopping in South Korea tax free?

How much is VAT in South Korea? The VAT is straightforward with only one common standard rate. The standard VAT in Korea is 10% for most purchases. Nonetheless, when buying certain cultural items, unprocessed foodstuffs, or medical products and services, you won't need to pay any VAT at all.

Does South Korea have tax free shopping?

South Korea operates a tourist tax refund scheme that allows international visitors to claim back a percentage of the VAT on goods purchased during their stay. Typically, VAT on most products is 10%, and eligible tourists can claim a large portion, depending on the refund process.

Do foreigners pay tax in South Korea?

In South Korea, income is taxed at progressive rates. The same rates apply to residents and non-residents. The only difference is that residents are taxed on their worldwide income, while non-residents are taxed on only their South Korea-source income.

How does duty free shopping work in Korea?

Items purchased at Shinsegae Duty Free are exempt from taxes and can be purchased under the condition that they can be taken out of the country. Therefore, you can only use duty-free shops when you leave the country, and you are not allowed to use duty-free shops when traveling within Korea, including Jeju Island.

Is it worth shopping in Korea?

As you can see, South Korea has something for every taste and budget. Whether you want to spend your days shopping in traditional markets or have a higher budget and want to explore fashion boutiques, you're guaranteed to find something you love.

Guide to Tax Refund and Duty-Free Shopping for Foreigners in Korea

How to get a tax refund in South Korea?

How much to spend in Korea for tax free?

Your purchase in one receipt is at least 15,000 KRW but less than 1,000,000 KRW; Total amount of your goods for the entire trip: less than 5,000,000 KRW.

Is South Korea a tax-free country?

A taxpayer in Korea, who is liable to pay the income tax on their income, is classified into resident and non-resident for income tax purposes (see the Residence section for more information). A resident is subject to income tax on all incomes derived from sources both within and outside Korea.

Is South Korea a good country for foreigners?

Korea is one of the safest countries in the world. It ranks high in the safety index by country and low in the crime index by country. Korea also has an excellent healthcare system, which ensures access to high-quality medical service.

Do you tip in Korea?

Do you tip in South Korea? It's not a local practise to tip in South Korea. Unlike in many Western countries where tipping waiters, taxi drivers, and hotel staff is so common it's almost automatic, in South Korea tipping can be considered rude. Tips may be turned down or cause embarrassment if they're offered.

Do you need to show items for VAT refund?

Customs agents may ask you to present your unused goods to verify that you are, indeed, exporting your purchase — if your purchases are inside your checked luggage, stop by customs before you check it. Allow plenty of extra time at the airport to deal with the VAT refund process.

Which country gives the highest VAT refund?

For instance, you can expect a higher VAT refund in Hungary because the country currently has the highest VAT rate in Europe with a standard rate of 27%⁴. Conversely, Luxembourg has the lowest standard VAT rate, which is at 17%⁵. So, you might see a smaller VAT refund percentage in Luxembourg.

What is exempt from VAT in South Korea?

Certain goods and services (like land, unprocessed agricultural & fishery goods, books, financial services, medical services and education services, etc.) are exempted from VAT.

What is tax free shopping abroad?

Tax Free shopping is when VAT or “sales tax” is waived for international tourists. Many countries across the world have VAT refund policies in place for international tourists, although certain restrictions and eligibility rules apply.

How much is retail tax in Korea?

The Korean standard VAT rate is 10.0%, which is below the OECD average. The average VAT/GST¹ standard rate in the OECD was 19.3% as of 31 December 2024. Korea also applies a reduced VAT rate of 0% to certain inputs for agriculture; fishery; livestock and forestry and to certain equipment for disabled persons.

Is Korea tax free for tourists?

There are 2 types of tax refund in Korea: You show your passport and you don't pay the tax at all. You don't have to do anything else if this is the case. They give you a receipt that you need to bring to the airport and they give you some money back there.

Is there tax on items in Korea?

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) ...

Can you bring nicotine pouches into Korea?

Yes, you can bring nicotine pouches into South Korea for personal use.

How much is a Korea VAT refund?

The refund amount will be calculated based on the amount spent, VAT, and the service charge of the refund agency applicable to the purchase. Therefore, most of the VAT in Korea is 10%, but if the service charge of the refund agency is deducted from this, you will be able to get a refund of about 4-7%.

Where can I get my tax refund in Myeongdong?

What is the best thing to buy from South Korea?

Should you haggle in South Korea?

South Korea travel guide

Most market merchants will expect you to haggle hard, so do so – with a smile, of course. The best shopping experiences come hand-in-hand with good lunching and dining opportunities – something you'll experience in Seoul's vibrant shopping districts.

What is Seoul famous for shopping clothes?

Cheongdam-dong Luxury Fashion Street

This upscale street in Gangnam is a hotspot for luxury shopping in Seoul. Located near Apgujeong Rodeo Station (Bundang Line), it's lined with flagship stores of international brands like Chanel, Prada, and Louis Vuitton.

Can tourists get VAT back?

From 1 January 2021, the UK government ended tax-free sales in airports, ports and Eurostar stations. This means you cannot buy tax-free goods such as electronics and clothing if you are travelling to non-EU countries. VAT refunds for overseas visitors in British shops have now been removed.