Shopping in Korea? Get those tax refunds

HEADLINES:
|

ADVERTISEMENT

HEADLINES:
|
dpo-dps-seal
Welcome, Kapamilya! We use cookies to improve your browsing experience. Continuing to use this site means you agree to our use of cookies. Tell me more!

Shopping in Korea? Get those tax refunds

Clipboard


Plus the best ways to get around for less


Seoul impressed me in many ways, including the efficiency of its public transportation. For most of our 10-day stay, we used buses and trains and even when we had to switch trains or took a mix of bus and train, we could easily follow the suggested routes from the Naver app.

But there were two things that confused us, and it turns out, some of you as well, as you reached out and asked about them.  Coming off from my recent post sharing 8 tips on how to save on your Seoul vacation, I realized that I skipped two important items: tax refund and airport transfers.

How to claim tax refunds in Seoul

When shopping in Seoul, tourists who are staying for less than 6 months can claim tax refunds when they spend as little as KRW15,000 or about P625.  Most of the Value Added Tax (VAT) I noted in our receipts is 10 percent, but don’t expect to get this full amount back.

The refund amount varied a lot, which confused us, and seemed to be calculated based on the VAT, the amount spent, plus the service charge of the refund agency applicable to the purchase.  And there were many refund agencies – from Nice Tax Free to Cube Refund to EasyTax Refund and refunds can go from as little as 4 percent to as high as 7 percent, but at least for us, never the full 10 percent.  There are also a number of ways to claim the tax refund and I’m listing them here so you don’t miss out.

ADVERTISEMENT

#1 Get your refund in-store

The easiest of all options is to get the tax refund from the store where you are making a purchase.  They will deduct the refund from your total bill so you won’t have anything else to do after the payment.

#2 Claim from tax refund machines

Some stores cannot provide you with the tax refund as you pay, so you can go to a nearby tax refund machine.  Usually in malls or shopping areas, the machines would be at the highest level, or at the lowest level.  

But these machines, which are just like the ATMs we are familiar with, require a guarantee.  You have to swipe your credit card, and in case you overstay in Korea, the guarantee – which can be 110 percent to 130 percent of the tax refund value – will be charged to your credit card.

I worried about the guarantee, and actually asked Customs at the airport to validate my purchases to make sure I don’t pay any of the penalties on my credit card.  Turns out it is automatic – so long as you leave Korea within 6 months, the guarantees will be reversed from your credit card soon after your departure date.

#3 Queue at the airport

If you did not get to claim in-store or from the tax refund machines, don’t worry – you can still make a tax refund claim at the airport.  There are tax refund counters in all terminals and in both Incheon and Gimpo airports.

ADVERTISEMENT

There is usually a line, but it moves fast.  You need to be ready with all your receipts and scan the barcode at the bottom to track the eligible purchases.  If you cannot remember which receipts have earned you a tax refund, that’s fine.  The machine will show it, so if your receipts got mixed up, just scan them all and see which ones can still be claimed.

If you claim at the airport, you have the choice to get your refund in Korean Won, or US dollars, even Japanese Yen.

#4 Mail refund is possible too

You can also file a tax refund via mail.  Use the marked envelopes from tax refund agencies and complete the required information in the tax refund forms (Passport no., Name and Refund Option).  Make sure to get the customs validation prior to submission.  There are usually two refund methods, which can be by Alipay or by credit card.  If you choose tax refund by credit card, the refund amounts will be deducted from your credit card bill, usually within 3 months.

Choose your airport ride: Kakao, Uber or Klook

Moving around Seoul is easy via bus or trains.  Taxis are also aplenty, and you can just hail them from the street.  But for airport transfers, and with all of our luggage, we decided to book a private car.

My best bet is always Klook, which offers discounts and is transparent with how many passengers and how many pieces of luggage, including size, are allowed. Our plane departed Manila late, and it’s nice that we can message our driver so he knew ahead we will be arriving late.

ADVERTISEMENT

On our way home, I mixed up the date so Klook was not possible anymore, and I had to download Kakao Taxi, K Ride and Uber to explore other options.

Kakao Taxi will pass you on to K Ride if you declare that you are foreigners. And in all the times we checked the fares on K Ride, it was always at least 20 percent higher than Uber.  I wanted to try K Ride because you can book your ride ahead, unlike Uber, which is book and ride now.

In the end, we went with Uber and were so glad we did.  Not only did we pay less, but the driver also accommodated all our luggage.  At the time of booking, the app showed that the fare could be between KRW57,700 to KRW74,900 so we braced ourselves to pay KRW74,900.  But we were charged even less than the low end of the estimate and only paid KRW56,500 for a ride from Myeongdong to Incheon International Airport Terminal 1.  That ride made me miss Uber, wishing they were still present in Southeast Asia.

You also have the option to take a bus or train from and to the airport, which would be more cost-effective for solo or couple travelers.  

Between your arrival in and departure from Seoul, there are many bargains to discover that can make your wallet also declare Kamsahamnida.

ADVERTISEMENT

ADVERTISEMENT

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

It looks like you’re using an ad blocker

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website.

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website.