A Complete Guide to Taiwan’s Tax Refund Process
When traveling to Japan, Korea, Europe, or other destinations, many shoppers apply for tax refunds after purchases. Similarly, foreign tourists shopping in Taiwan can also enjoy tax refunds. Taiwan’s tourist tax refund policy was introduced as early as 2003, but due to the high threshold for stores to register as tax-free merchants, only a limited number of shops—typically those in shopping malls frequented by tour groups or high-end stores—offered this service. As a result, many were unaware that Taiwan also provided tax refunds. However, since May 2016, Taiwan has revised its tax refund regulations, lowering the registration threshold for tax-free stores and simplifying the refund process. Now, tax refunds are available at many more locations across Taiwan. During my recent trip, I experienced the tax refund process for the first time. Below, I’ll share the Taiwan tax refund procedures and workflow.
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Eligibility, Conditions, and Tax Rates for Taiwan Tax Refunds
Below is an introduction to the eligibility, conditions, tax rates, and service fees for foreign tourists applying for tax refunds in Taiwan.
1. Who is eligible for tax refunds?
Foreign tourists entering Taiwan with a passport, travel document, or entry permit and staying for no more than 183 days are eligible to apply for tax refunds.
2. What is the tax refund rate in Taiwan? How is the refund amount calculated?
The tax refund rate in Taiwan is 5%, calculated based on the pre-tax amount. The amount shown on the receipt includes the 5% sales tax. To calculate the pre-tax amount, divide the receipt total by 1.05. For example, if the receipt shows NT$5,040, the pre−tax amount is NT$4,800 (5,040 ÷ 1.05 = 4,800), and the tax amount is NT$240 (4,800 × 5% = 240).
However, since May 1, 2016, the Taiwanese government has outsourced tax refund services to private companies, which charge a 20% service fee (previously 14%). As a result, tourists only receive 80% of the 5% tax refund, effectively reducing the refund rate to 4%. In the example above, the refund amount would be NT$192.
3. Where can you shop to get a tax refund?
Tax refunds are only available at registered tax-refund merchants (similar to duty-free shops) in Taiwan. These merchants typically display the following tax refund logo. If you don’t see the logo, you can ask the staff.
Since the new tax refund regulations were introduced in May 2016, more stores have become eligible for tax refunds. Now, not only shopping malls and department stores but also chains like Cosmed and Watsons offer tax refunds.
4. Which products are eligible for tax refunds?
In principle, any product purchased in Taiwan and carried out of the country by the traveler is eligible for a tax refund, except for prohibited items. Popular souvenirs like pineapple cakes, sun cakes, pork jerky, and cakes can also be refunded, but they must be carried out personally—mailing them is not allowed. Consumables used within Taiwan, such as hotel and dining services, are not eligible.
5. What is the minimum purchase amount to qualify for a tax refund?
To be eligible for a tax refund, the total purchase amount (including tax) at the same registered merchant on the same day must exceed NT$2,000. This NT$2,000 threshold is based on the total amount including the 5% sales tax, so you can simply check the receipt to confirm eligibility.
For shopping malls or department stores, the “same merchant” refers to the mall or department store itself. Typically, these venues consist of multiple independent shops, and purchases from different stores within the same mall or department store are considered as from the same merchant. This is important because buying souvenirs from standalone stores may not reach the NT$2,000 threshold, but combining purchases from multiple stores within a mall or department store makes it easier to qualify.
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Taiwan Tax Refund Procedures
Below is a step-by-step guide to the tax refund process in Taiwan, including how to request a refund during purchase, how to claim an on-the-spot refund, and how to process refunds at airport counters.
1. Step 1: During Purchase
When shopping at a registered merchant, inform the staff before checkout that you’d like a tax refund and present your passport for registration. The staff will enter your passport number into their system and print an electronic invoice and a purchase detail slip. In Taiwan, these two documents are standard for purchases, but if you don’t request a refund, the purchase detail slip won’t include your passport number, making it ineligible for refund claims. Therefore, always notify the staff if you want a refund. Additionally, if shopping at a mall or department store, ensure you use the same passport for all purchases, as receipts with different passport numbers cannot be combined for refunds.
The image below shows a standard purchase detail slip (left) and one with a passport number for tax refunds (right).
If shopping at an independent registered merchant, the staff will print a Foreign Tourist Purchase Refund Application Form for you to sign. For on-the-spot refunds, this will be replaced by a Foreign Tourist On-the-Spot Small Amount Tax Refund Approval Form (details in the next section).
If shopping at a mall or department store, take your electronic invoice and purchase detail slip to the mall’s tax refund counter.
Some well-organized malls or department stores provide a customized purchase summary to record transactions from multiple stores, simplifying the refund process.
The Foreign Tourist Purchase Refund Application Form includes your personal details, purchase location, date, product information, amount, and refundable tax. The form is issued in duplicate: one copy is kept by the merchant, and the other is used by the customer to claim the refund. (Note: For on-the-spot refunds, this is replaced by the On-the-Spot Small Amount Tax Refund Approval Form, as explained in the next section.)
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2. Step 2: Claiming the Refund
There are three ways to claim a tax refund in Taiwan:
- On-the-spot refund at the registered merchant.
- Airport or port tax refund counter.
- Downtown tax refund counter.
Regardless of the method, a 20% service fee will be deducted.
(1) On-the-Spot Refund
Some registered merchants offer on-the-spot small-amount refunds, but the total purchase amount (including tax) per refund cannot exceed NT$48,000. Additionally, the cumulative purchase amount (including tax) for on−the−spot refunds during the same trip must not exceed NT$120,000. If you’ve previously claimed on-the-spot refunds in Taiwan within the same calendar year, the cumulative amount must not exceed NT$240,000. Eligible merchants typically display the following logo:
During my recent trip to Taipei, I noticed that chains like Cosmed, Watsons, and Sasa offer on-the-spot refunds, as does the Breeze Taipei Station mall.
For on-the-spot refunds, instead of signing the Foreign Tourist Purchase Refund Application Form, you’ll sign a Foreign Tourist On-the-Spot Small Amount Tax Refund Approval Form. The content is largely the same. This form is also issued in duplicate: one copy is kept by the merchant, and the other is for the customer’s records.
For on-the-spot refunds, the staff will inspect the purchased items before providing the refund in cash. Unlike Japan, Taiwan does not require special sealed packaging for tax-free goods. Items refunded on the spot do not need to be inspected or declared upon departure.
(2) Airport (or Port) Tax Refund Counter
If the merchant does not offer on-the-spot refunds or the purchase exceeds the small-amount limit, you must claim the refund at the airport or port tax refund counter before departure. At the counter, your purchases may be subject to inspection, though small refunds are usually exempt. Be sure to process the refund before checking in for your flight.
The process at the airport or port refund counter is straightforward. Present your passport, receipts (electronic invoice and purchase detail slip), and the signed Foreign Tourist Purchase Refund Application Form.
The staff will ask whether you’d like the refund in cash or credited to your credit card. After verification, they’ll print a Tax Refund Approval Slip. For cash refunds, the slip comes in duplicate: one copy is for your records (second copy), and the other (first copy) is submitted to the nearby Bank of Taiwan counter to receive the cash.
Note: The system may randomly select some refund applications for item inspection. If selected, you’ll need to visit the customs counter for inspection before proceeding with the refund.
In addition to the refund counter, some airports have self-service kiosks for refunds, usually located near the counter.
The self-service kiosk process is simple and takes about two minutes. Start by tapping the screen, select your language, and follow the instructions to scan your passport (photo page) and the QR code on the refund application form. If everything checks out, the kiosk will print a Tax Refund Approval Slip. Take this slip to the Bank of Taiwan counter next to the refund desk to receive your cash refund.
Note: If the kiosk prints an inspection slip, your items have been selected for inspection. Visit the customs counter before proceeding with the refund.
2.1 Tax Refund at Taipei Main Station (Taoyuan Airport MRT)
If departing from Taoyuan Airport and taking the Taoyuan Airport MRT from Taipei Main Station, you can process your refund at the station’s tax refund counter on the day of departure. However, the purchase amount (including tax) must not exceed NT$48,000.
2.2 Location of Tax Refund Counter at Taoyuan Airport Terminal 1
The tax refund counter and self-service kiosks at Taoyuan Airport Terminal 1 are located near Check-in Counter 1 in the Departure Hall on the 1st floor. For exact locations, refer to the airport’s interactive map.
Floor plan of Taoyuan Airport Terminal 1 Departure Hall (1st floor):
2.3 Location of Tax Refund Counter at Taoyuan Airport Terminal 2
2.4 Location of Tax Refund Counter at Taichung Airport
2.5 Location of Tax Refund Counter at Kaohsiung Airport
Note: For other airports or ports, refer to this page.
(3) Downtown Tax Refund Counter
The tax refund service provider also operates counters in some downtown registered merchants (usually large malls or department stores). However, the downtown refund process is more cumbersome. When receiving the refund, you must provide a credit card to cover a 7% deposit (higher than the actual 4% refund rate). Additionally, you must still visit the airport or port refund counter or kiosk upon departure for potential item inspections. If you forget, the deposit will be forfeited. Therefore, avoid downtown refund counters unless necessary.
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