Have you been shopping in Taiwan and wondering how to claim your tax refund?
Taiwan, like many other countries, offers a tax refund program for tourists, allowing you to save money on eligible purchases. However, not all items qualify for a refund—for example, food meant for immediate consumption and skincare products intended for use during your stay are excluded. Plus, there’s usually a minimum spending requirement before you can apply.
Curious about the details? This guide will walk you through everything you need to know, including which purchases qualify, how much you can get back, and the step-by-step process to claim your refund hassle-free before leaving Taiwan.
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Understanding Taiwan’s Tourist Tax Refund System
Taiwan offers a tax refund program called “Tax Refund Shopping” (TRS) that allows international visitors to claim back the 5% VAT on eligible purchases. This program makes shopping in Taiwan more attractive for tourists while ensuring they don’t pay unnecessary taxes on items they’re taking home.
How To Qualify for Tax Refund?
To qualify for a tax refund in Taiwan, you must:
- Be a foreign tourist visiting Taiwan for less than 183 days
- Make purchases at participating Tax Refund Shopping stores
- Spend at least NT$2,000 (approximately US$65) in a single transaction
- Leave Taiwan with the purchased items within 30 days of purchase
So as a foreign visitors who spend NTD 2,000 or more at a single authorized TRS-labeled store on the same day, is eligible to claim a tax refund. Simply present your entry documents to the shop assistant on the purchase date to request the tax refund form.
Here’s a useful tip: Department stores are treated as a single authorized TRS(Tax Refund Shopping)-labeled store, so it’s usually easier to meet the NTD 2,000 spending requirement. Some department stores even have on-site refund counters for added convenience. To save time, we recommend checking the refund services section on the department store’s official website before you visit.
How Is the Refund Amount Calculated?
The tax refund rate is 5%, but the actual amount you receive will be slightly less than 5% of your total spending due to a 20% service fee deduction. Here’s how the calculation works:
- Receivable VAT refund formula:
VAT-included price on the receipt ÷ 1.05 × 5% (rounding to the nearest whole number). - Final refund amount:
Receivable VAT refund – (Receivable VAT refund × 20% service fee) (rounding down to the nearest whole number).
Example:
If you spend NTD 2,000, your refund would be calculated as:
- Receivable VAT refund:
NTD 2,000 ÷ 1.05 × 5% = NTD 95 - After service fee deduction:
NTD 95 – (NTD 95 × 20%) = NTD 76
So, the final refund you’ll receive is NTD 76.
Don’t worry if this seems complicated—there’s no need to figure it out manually. The official tax refund app has a built-in calculator that makes it simple. The app will be mentioned in the next section, so stay tuned!
Tax Refund Options: Airport vs. On-Site – What You Need to Know
If you’re eligible for a tax refund, here’s how to make the process simple and stress-free:
- Take your purchases out of Taiwan within 30 days:
To qualify, you need to leave Taiwan with the purchased items within 30 days of purchase. - Confirm refund eligibility:
Before paying, ask the store staff if your items qualify for a tax refund. - Request the required documents:
Let the staff know you’d like to claim a refund, and they’ll provide a tax refund application form along with your receipt or invoice. - Choose your refund method:
- At the airport: Bring your application form and receipts to the tax refund counter when departing Taiwan.
- On-site refund: Some TRS-labeled stores offer the convenience of processing your tax refund directly at the time of purchase.
The Tax Refund Service at Airports/port terminals
If you’re planning to claim a tax refund at the airport, simply follow these steps to make the process quick and easy:
- Prepare your documents:
You’ll need:- Your passport
- Unified Invoice or e-Invoice
- Application Form for VAT Refunds
- Remember, you must request the Application Form for VAT Refunds from the store at the time of purchase. The store staff will ask for your passport during this step, so always keep it handy when shopping.
- Check goods for inspection:
Be aware that refund counters may request to inspect your purchased goods. To avoid any issues, make sure:- The items are intact and not opened or used.
- You have not lost the items.
Failure to comply with inspection requirements may result in a refund denial.
- Complete the refund process before checking luggage:
Submit your application before you check in your bags to avoid any complications. Also, ensure the items you’re claiming are leaving Taiwan within 90 days of purchase. - Plan your arrival time:
To avoid feeling rushed, arrive at the airport or port at least 3 hours before departure. This will give you enough time to complete the process smoothly. - For Taoyuan International Airport travelers:
If the total VAT-included value of your purchases is under NTD 48,000, you can skip the airport refund counter and complete your refund at the Airport MRT Taipei Main Station (A1) on your departure day.
On-site Small-amount Tax Refunds
Actually, you can process your tax refund directly at the store. Many TRS-labeled merchants, including large department stores like Shin Kong Mitsukoshi, SOGO, and Taipei 101 Shopping Mall, offer this convenient option. Luxury boutiques, electronics retailers, and stores in popular shopping areas such as Ximending and the Xinyi District are also equipped to provide on-the-spot refunds.
Simply look for a “Tax Refund” or “退税” sign near the store entrance or checkout counter. Not sure if the store qualifies? Just ask the staff—they’ll be happy to help!
Timing and requirements:
- Tax refunds must be requested on the same day as your purchase.
- Items must leave Taiwan within 90 days of the purchase date.
- Make sure to bring your passport and unified invoice or e-invoice to complete the process.
When on-site refunds aren’t available:
You’ll need to claim your refund at the airport in these cases:
- A single transaction exceeds NTD 120,000 (VAT included).
- Multiple transactions within the same calendar year exceed NTD 240,000 (VAT included).
- Your traveler information hasn’t been recorded in the tax refund system.
Designated Counter for Tax Refund Service
Finally, this is the least recommended option: claiming your tax refund at specific counters in the city. The process is the same as at the airport, but before you can proceed, you’ll need to pay a 7% deposit with your credit card (remember, the refund is only 5%, and you have to pay a 7% deposit first…).
Additionally, if you don’t go to the airport or port’s tax refund counter for inspection before departure, or if you’re selected for inspection and fail to request it from customs, the deposit won’t be refunded. So, unless there’s no other option, this method is really not worth using.
Self-Service Tax Refund Machines
In addition to the tax refund counters, airports also offer self-service tax refund machines for the convenience of travelers. These machines are usually located near the tax refund counters. You can find their locations at each airport here: Official website.
The process is quick and simple, usually taking about 2 minutes. Start by touching the screen, then follow the instructions to scan your passport (photo page), other required documents, and the barcode on your tax refund application form. If all the information is correct, the machine will print out a tax refund approval slip. Take the slip to the counter to collect your refund in cash.
Please note down that the system may randomly select some tax refund applications for a goods inspection. If you are selected, proceed to the nearby customs counter for inspection before completing the refund process.
Taiwan Tax Refund App
You can claim a tax refund in three ways: cash, credit card (VISA, MasterCard, JCB, and UnionPay), or check. If you choose a cash refund, take your tax refund approval slip, printed at the self-service kiosk or refund counter, to the designated bank or cash counter at the departure airport or port to collect your refund.
If you prefer a credit card refund, you may need to use the tax refund app. Download it from the App Store by searching for “Taiwan Tax Refund App.” If you’re looking for more app recommendations to enhance your travel experience in Taiwan, check this out: 10 Must-Have Apps for Traveling in Taiwan
This is Taiwan’s official tax refund app, and it has two main functions: calculating the refund amount and checking the progress of credit card refunds. Once you open the app, you can find the calculator in the home page, click on the calculator, enter the price and quantity, and you can calculate the refund amount.
If you need to check the progress of your credit card refund, you can add your credit card to the app and track the status there.
Summary
Here are a few important things to keep in mind! According to tax refund regulations, if a product has been opened, used, or exchanged, it is not eligible for a refund. If customs inspection reveals that a product already refunded falls into any of these categories, even if you’ve already processed the refund at the store, you will still need to return the refunded amount at the tax refund counter at the airport or port. Failing to do so will prevent you from processing any future refunds.
Additionally, make sure to complete your tax refund and clear customs before checking in your luggage, as your items may need to be inspected. While inspections are random, if you’re selected and can’t provide the required items for inspection, your tax refund will not be processed. So, be sure to keep the items with you. Also, avoid mailing your items back before completing the inspection, as it could delay or prevent the process.
If you don’t apply for a refund before departing, or if your application is rejected, you cannot claim it afterward. Furthermore, if you’ve already received the refund but do not leave Taiwan, you must declare it to customs to avoid penalties. If there’s a system malfunction during the refund process, you can either wait for the system to be restored or visit the tax refund counter at the airport or port for assistance.
Finally, as long as the items purchased in Taiwan meet the requirements, they are eligible for a tax refund, including popular souvenirs like pineapple cakes.
Source: Official website
