Frequent travellers are familiar with the concept of VAT, but many will still find the procedure of redeeming VAT to be confusing and frankly, quite a hassle too. Due to differing laws in various countries, the necessary steps one needs to take to get VAT refund can be vastly different from Japan to France. Here’s some handy tips on redeeming VAT in the most popular countries:
Japan
Standard VAT rate: 8%
Minimum spending required in local currency: 5,001 yen exclusive of tax (RM 184.93 as of 17th November 2017)
T & C:
1. VAT refund must be done at shops labelled “Tax-free”, and on the same day of purchase in shopping malls or stores.
2. Only foreign visitors with passport are eligible for VAT refund.
3. Purchases between 5,001 yen to 500,000 yen for consumable items (such as food & drinks) or above 5,001 yen for general items (such as electronic products & clothing). Purchases consisting of both categories are NOT eligible for VAT refund.
4. You will need a) items you have purchased, b) receipts of your purchases, c) your passport, and d) credit card used to purchase the items (unless you pay for the items by cash only), and you will be asked to sign a document as well.
5. Your items will be sealed in bags that you should not open while in the country. Failure to do so might result in the customs department asking you to pay for GST before leaving the country.
6. You will receive your refund in cash along with a receipt that states “record of purchase of consumption tax-exempt for export”, which will be stapled to your passport.
South Korea
Standard VAT rate: 10%
Minimum spending required in local currency: 30,000 KRW inclusive of tax (RM 113.96 as of 17th November 2017)
T & C:
1. VAT refund must be done at shops labelled “Tax-free”, and on the same day of purchase in shopping malls or stores.
2. Only foreign visitors with passport are eligible for VAT refund.
3. When making payment, always ask for a tax refund slip.
(If you are getting your VAT refund at the airport)
4a. Once you’ve arrived at the airport, head to the customs office along with your purchased items and get the “All Goods Exported” stamp.
5a. Follow the instructions and scan your receipts at the Tax Refund machines and receive your refund in cash.
(If you are getting your VAT refund at shopping malls)
4b. Some major shopping malls have their own counters that process VAT refund, but they are most likely serving only one tax company out of the 3 major ones in South Korea (Global Tax Free, Global Blue, and Kt-Tourist).
5b. You will still need to present your receipts, tax refund slips, passport, and credit card for the VAT refund to be processed.
Taiwan
Standard VAT rate: 5%
Minimum spending required in local currency: NT$3,000 exclusive of tax (RM 415.63 as of 17th November 2017)
As for Taiwan, refunds will only be made to purchases at authorised Tax Refund Stores
1. VAT refund must be done at shops labelled “Tax Refund Stores”, and on the same day of purchase in shopping malls or stores.
2. Only foreign visitors with passport are eligible for VAT refund.
3. Collect the application form for VAT refund and receipt as proof of purchase.
4. If you shop at Taipei 101, Taipei’s Pacific Sogo Department Store’s Zhongxiao branch, Shin Kong Mitsukoshi, and Kaoshiung’s Hanshin Department Store, you can apply for VAT refunds.
5. In addition, any purchases in Shin Kong Mitsukoshi made between NT$3,000 and NT$20,000 will be eligible for a cash refund on the spot.
6. You can also apply for refund at E-VAT Refund machine at major cities or Foreign Passenger VAT Refund Service Counter in the airports or seaports.
7. You will need your passport, VAT refund application form, and receipts as well.
UK
Standard VAT rate: 20%
Minimum spending required in local currency: £30 (RM 165.39 as of 17th November 2017)
1. VAT refund must be done at shops labelled “Tax-free”, and on the same day of purchase in shopping malls or stores.
2. Only foreign non-EU visitors with passport are eligible for VAT refund.
3. After buying items from an eligible shop, ask for a Tax-free form from the shop’s staff and fill it up.
4. You will be asked for your passport to check your eligibility to apply for a refund.
5. At the airport or other refund points, present the Tax-free form along with your receipts and passport at the Customs counter. You can choose to be paid via cash or credit card.
France
Standard VAT rate: 20%
Minimum spending required in local currency: €175.01 (RM 861.19 as of 17th November 2017)
1. VAT refund must be done at shops labelled “Tax-free”, and on the same day of purchase in shopping malls or stores.
2. Only foreign non-EU visitors with passport are eligible for VAT refund.
3. After buying items from an eligible shop, ask for a Tax-free form from the shop’s staff and fill it up.
4. You will be asked for your passport to check your eligibility to apply for a refund.
5. At the airport or other refund points, present the Tax-free form along with your receipts and passport at the Customs counter. You can choose to be paid via cash or credit card.
Italy
Standard VAT rate: 22%
Minimum spending required in local currency: €155 (RM 762.66 as of 17th November 2017)
1. VAT refund must be done at shops labelled “Tax-free”, and on the same day of purchase in shopping malls or stores.
2. Only foreign non-EU visitors with passport are eligible for VAT refund.
3. After buying items from an eligible shop, ask for a Tax-free form from the shop’s staff and fill it up.
4. You will be asked for your passport to check your eligibility to apply for a refund.
5. At the airport or other refund points, present the Tax-free form along with your receipts and passport at the Customs counter. You can choose to be paid via cash or credit card.
Australia
Standard VAT rate: 10%
Minimum spending required in local currency: 300AUD (RM 948.75 as of 17th November 2017)
1. VAT refund must be done at shops labelled “Tax-free”, and on the same day of purchase in shopping malls or stores.
2. Both foreign visitors and Australian residents leaving for an extended period are eligible for VAT refund.
3. You access the Tourist Refund Scheme (TRS) web app at this link. Alternatively you can also download the Android version here, iOS version here, or the Windows mobile version here.
4. After filling up the TRS form, save the QR code that’s provided by the TRS web app.
5. Once at the airport, inform the check-in staff that you want to claim your VAT, and you will be directed to the TRS facility.
6. Present them the QR code given to you by the TRS web app along with your passport and boarding pass.
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https://www.grabean.com.my/post-trip
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