Tax Refund Guide for Shopping in Korea How to Refund Tax When Shopping in Korea

Shopping is absolutely indispensable in Korea. Since there is shopping, there will definitely be relevant considerations regarding taxes. The editor will tell you about the tax refund strategy here. You have to remember to refund the tax and abide by the rules here.

Notes

Where can I apply for shopping tax refund?

Tax-free merchants can enjoy tax refund policies, and some stores will place tax refund signs in prominent locations to attract customers.

Am I eligible for a tax refund?

For tourists, the requirement for tax refund is that tourists entering the country with a short-term tourist visa (no restrictions on individual visas and group visas) can enjoy tax refunds. Therefore, even if your visa is for three or even five years, as long as it is a short-term tourist visa, you are eligible for tax refund.

Tax refund amount and limit

Tax refund amount

When issuing a tax refund form, the consumption is required to be between 30,000 won and 200,000 won, and the total consumption during the trip to South Korea must not be More than 1 million won.

Can the total consumption be combined?

When shopping in a comprehensive shopping mall, if you can "combine" the tax refund forms, you do not need to spend more than 30,000 won for a single purchase, as long as the amount shown on the single tax refund form exceeds the minimum standard. Therefore, you need to ask the merchant whether you can combine tax refund forms before shopping.

It should be noted that if the store can issue a tax refund form for combined consumption, it also needs to be consumed on the same day. Therefore, you need to issue a tax refund form promptly after consumption.

The goods cannot be opened and used.

Goods requiring tax refund at the airport must be unopened and used during your stay in South Korea. After understanding your tax refund needs, the store will plastic-seal the tax refund products in special customs bags. You only need to submit the goods and plastic bags to the customs for inspection, and you can get the tax refund stamp confirmed by the customs.

And bring the files that need to be saved.

You need to carry your passport with you when shopping. When you issue a tax refund form, the merchant will check it.

If you use Alipay for tax refund, you need to provide the mobile phone number bound to the Alipay account.

Please keep the original shopping receipt (different from the tax refund form) properly, as the customs will ask for it.

Tax refund methods

At present, there are many ways to choose tax refund in South Korea. It is divided into airport cash tax refund, Alipay tax refund, Kiosk tax refund machine, city cash tax refund, and on-site tax refund starting in 2016.

Tax refund process

In addition to on-site tax refund, other tax refund methods require stamp confirmation at the airport customs.

Tax refund process for airport cash, credit card, Alipay and airport kiosks

Alipay tax refund:

South Korea cannot provide Alipay tax refund, only Global Duty Free can provide it Alipay tax refund.

When filling out the tax refund form, please pay attention to whether there is the Alipay logo.

Baggage Check:

When you enter the airport, you need to check in first. Do not bring tax refund consignments. If you need to check it in after inspection (such as liquids, excessive volume, etc.), please explain to the counter staff and go through the check-in formalities after customs inspection.

Documents and certificates required for airport processing:

Customs should bring your passport, tax refund form, original shopping receipt and unopened tax refund items during tax refund inspection;

Self-service customs tax refund process:

Currently, Seoul Incheon International Airport provides self-service tax refund services at the customs step. You need to scan your passport and receipt for tax refund products on the machine, but be sure to ask the staff if the tax refund form needs to be stamped. If not, you can directly start the security check and enter the boarding hall;

Tax refund is not the departure office:

Although it is called "customs", the customs staff responsible for inspecting tax refund goods are not there Airport exit. You can leave the country only after the tax refund inspection is stamped.

Cash refunds may require queuing:

The cash refund window may require a long queue, so please control your time at the airport in advance.

Airport self-service tax refund machine:

Currently, the airport KIOSK tax refund machine only provides services at Seoul Incheon International Airport.

Credit card and Alipay tax refund:

You only need to put the stamped tax refund form into the corresponding tax refund mailbox to complete the airport tax refund process.

The tax refund will be transferred to the account you provided within about 10 working days

Cash tax refund in urban areas can be completed through banks, tax refund counters, and KIOSK self-service tax refund machines in urban areas. Tax refunders can get cash immediately Tax refund. However, when tourists receive their tax refunds, their credit cards will be blocked. The hold on your credit card will only be lifted after airport inspection and customs stamp.

Requirements for using credit cards:

Try to use VISA and MASTER credit cards to freeze the corresponding amount. The frozen amount does not constitute consumption. As long as you successfully obtain the stamp confirmed by the customs, no fees will be incurred.

Whether a UnionPay card can be used for freezing or not depends on the company handling the tax refund.

Cash refund points in urban areas:

At present, online stores offering cash tax refunds in the city are concentrated in Seoul.

On-site tax refund

Since 2016, some stores in South Korea support on-site tax refund, that is, you can directly pay the price after deducting the tax refund amount by providing your passport when shopping.

Advantages

You can directly enjoy the price equivalent to duty-free goods without going to the airport for tax refund.

Disadvantages

Only some merchants support on-site tax refund and may need to use an established cashier. However, the companies on these lists are still growing in size.