Alipay Allows Tourist Tax Refunds

August 23, 2018 Taxation in ChinaTaxation in South Korea

Alipay tax refundSEOUL – Alipay, the world’s largest mobile payment network, is now leading the way for mobile tax refunds for tourists.

In a press release earlier this week, the mobile payment network announced that it is launching the first digital tax refund service in the world.

The new service will be open to tourists from China who have made purchases while visiting South Korea for tourism purposes.

With the new system, tourists using the Alipay system can skip the customary visit to the tax-refund kiosk and counter.

All that users will need to do is scan their passport at a specified location prior to departure.

At any point within 90 days of eligible purchases being made, the tourist can scan their tax refund receipts into the Alipay app, and the tax refund will be credited to them directly and instantaneously.

The tourist tax refund system is widespread in South Korea, with an excess of 10 000 retailers across the country participating in the scheme.

Alipay claims that this new system is the first one that allows for the automated refund of taxes, although Alipay already has agreements with approximately 80 airports allowing tax refunds to be deposited directly into an Alipay account.

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