If you’re the type of traveler who enjoys shopping abroad, then one thing you should really take advantage of is the tax refund policy implemented in many countries. In this article, we’ll share with you a step-by-step guide on how to avail of it in Japan, Thailand, Taiwan, and Singapore.
What is a tax refund? In a nutshell, it is a reimbursement made by the government to a taxpayer. When we purchase something in most countries, a certain tax is added to it that is included in the final price that we pay as customers. Some countries exempt tourists or non-residents from paying certain taxes, so they find a way to return the tax amount through cashback or credit.
Tax refund is known by many names. In some countries like Thailand, it’s called VAT refund (value added tax refund). In Singapore, the term is GST refund (goods and services tax refund). But they refer to the same thing.
In countries that offer it, you can avail of a tax refund if you purchase at participating shops and reach the minimum combined value set by the government. Here’s how.
WHAT’S COVERED IN THIS GUIDE?
THAILAND VAT Refund
Thailand is one of the best shopping destinations out there, so we always avail of tax refund whenever possible.
- Shop at a participating store. They usually display a “VAT refund” signage outside or inside the store. Most popular local and global brands inside malls offer this. But most establishments at shopping places like Platinum Mall in Pratunam and Chatuchak Market do not. If you’re not sure, just ask any of the staff at that store. The minimum combined purchase amount is: THB 2,000
- Present your passport at the cashier. Before paying, inform the cashier that you wish to avail of VAT refund. They’ll then fill out a tax refund form and have you sign it. Keep this form along with the receipt.
- On your departure day, arrive at the airport early. Expect long queues at peak hours (but not all the time).
– If the total value of your purchases exceeds THB 20,000, proceed to the Customs Inspection counters at the Departure Hall. Have your tax refund forms STAMPED at these counters. Sometimes, they do inspect the items you bought so do NOT check in your luggage yet.
– If the total value is below THB 20,000, no need for a stamp. You can skip this step. - After clearing Immigration and Security checks, proceed to the TAX REFUND COUNTER to get your cash. It’s close to Gate D1-D4 and D5-D8. You’ll need to present your passport, tax refund form, and receipts. You’ll also be handed a small form that you need to fill out, confirming that you have received the money. The amount will be issued to you in baht. But if the refund amount exceeds THB 30,000, it will be released by bank draft or credited back to your credit card account.
That’s it! On our most recent trip, my total purchase amount was THB 18,000 and I received a refund worth THB 840. Yosh, on the other hand, spent a total of THB 14,000 and received a cashback worth THB 630. That’s roughly 5%, minus fees. In the end, we got around 4.5% of the total amount.
TAIWAN Tax Refund
In Taiwan, tax refund is often abbreviated TRS (which stands for tax refund shopping). This sign/logo is what you should look for.
- Shop at stores with TRS label (see above image). The minimum total purchase amount is NTD 2,000.
- Present your passport at the cashier. At some stores, you may be directed to a separate tax refund counter, while others can process it on the spot. You’ll be asked to sign a tax refund form that you must keep along with the receipt.
- At the airport, find the electronic tax refund machines at the Departure Hall. Do NOT check in your luggage yet. Scan your passport and the QR code on the tax refund form.
- Select how you want to receive your refund: CASH or CREDIT CARD.
– If you choose CREDIT CARD, the amount will reflect on your account in 7 to 10 days. That’s it. You’re done.
– If you select CASH, the machine will print out 2 copies of a receipt. Then follow the next steps below. - Find the tax refund counters. At Taiwan Taoyuan International Airport, they are located just next to the machines. The staff will ask you to sign the two receipts and hand these to them to receive your cash refund.
That’s it!
Note: Do not check in the items you purchased before claiming a refund. There is a chance that they will inspect the items, so it’s best to have it with you.
In our experience at Taiwan Taoyuan Airport, all airport steps happened at the Departure Hall. There are no additional steps past Immigration check.
It is said that some shops also offer on-site tax refunds for small amounts, but we have never tried that ourselves.
SINGAPORE GST Refund
In Singapore, the three letters to remember are GST, which is short for Goods and Services Tax. And the signs to watch out for are the following:
To claim a GST refund, follow these steps.
- Shop at participating stores with Global Blue or Global Tax Free logo. Before paying, let the staff know you wish to avail of it. The minimum purchase amount is SGD 100.
- Present your passport at the cashier upon payment. The staff will encode your passport details and list of items you purchased on the eTRS (Electronic Tourist Refund Scheme) form. This will make it much easier for them to verify the items at the refund counters. Make sure to keep your receipts.
- At Changi Airport, look for the GST Refund counters or kiosks at the Departure Check-in Hall. Here, you’ll find the GST machines. Scan your passport and you’ll be shown on the screen a list of your transactions and the amount you’re expected to receive. Confirm that everything is accurate by clicking NEXT.
- Select how you want to receive your refund: CASH or CREDIT CARD.
– If you choose CREDIT CARD, prepare to enter your credit card details. The refund will be credited back to your account within 10 days.
– If you select CASH, read on and follow the steps below.
The machine will also tell you whether or not you have to drop by the Customs Inspection Counter. - Approach Customs Inspection Counter, only if the machine prompts you to. It’s located next to the machines. It’s here that the items you purchased may be checked, so it is important that you DO NOT check in yet.
- Proceed to the Central Refund Counter after you check in and clear Immigration check. You’ll find it at the Departure Transit Lounge, immediately after the Immigration area. Fall in line. When it’s your turn, present your passport. It is here that you’ll receive your refund amount in SGD cash!
Note: Be sure to arrive early just in case the queues get long. But DO NOT check in your bags yet. I actually made this mistake. I applied for GST refund after checking in, but they wanted to see the items in question. They still processed it, but I was told to do it right next time.
JAPAN Tax-Free Shopping
In Japan, you can avail of tax-free shopping for a whole gamut of products: gadgets, clothes, shoes, souvenirs, cosmetics, fragrances, and even food items. But you have to reach the minimum purchase amount of JPY 5,000.
You can avail of tax-free shopping in two ways, depending on what’s being implemented by the store.
- ON-SITE TAX DEDUCTION. This is the more common way, as more shops implement this method including Don Quijote, BIC Camera, Yodobashi, Uniqlo, GU, and even international brands like H&M and Zara. Participating stores usually have a dedicated cashier for tax-free shopping. The cashier will scan the QR code on your passport, and they will deduct the tax from the total cost of the product on the spot. This way, you’ll be paying less than the regular published rate, and there is no need for you to queue up for a refund at the airport.
- AT TAX REFUND COUNTERS. Other stores will charge you the full amount, but you can still claim tax refund at another site. We’ve experienced this at a Hanshin mall in Osaka. After paying for the item, we were told to proceed to a separate, centralized tax refund counter within the same mall, where we filled out a form. Once processed, we were handed the refund in cash.
Either way, please take note of the following:
- Bring your passport when shopping. You’ll need to present your passport before payment.
- Keep a copy of the receipt. At the airport, you’ll find drop boxes stationed just before the Immigration Area. Just insert your receipts into the box and you’re good to go.
- If you’ll avail of tax-free privilege for consumable products like cosmetics and food items, don’t open its container. At shops like Don Quijote, the staff will place these items in a separate SEALED bag, and you’re not supposed to open it until you leave Japan. Although to be honest, it is often go unchecked, it’s best to follow this policy just in case your bags get inspected at the airport.
Updates Log
2024 • 7 • 28 – Originally posted
Written by: Vins Carlos & Yosh Dimen