Hotel VAT refund in Korea: who qualifies and how it works

Korea refunds the 10% VAT on hotel rooms to foreign tourists, but only at designated hotels and only under set conditions. This guide explains how to tell whether your stay qualifies before you count on the money.

Figures last checked: October 13, 2026 · Sources and method

The short version

• The refund applies to lodging VAT, not to shopping. Shopping refunds follow a different system, covered in our tax-free shopping guide.
• Only hotels designated as "special-application tourist lodging" can offer it. Most hotels are not designated.
• The stay must be 30 nights or fewer and the guest must be a foreign individual traveller, not a resident.
• Payment must be made at the hotel in Korea; the rules do not cover everything prepaid through every channel, so confirm before you book.
• The amount you receive is the VAT minus a handling fee taken by the refund operator.

Which hotels are designated

The Ministry of Culture, Sports and Tourism designates hotels and publishes the results by quarter. The third-quarter 2026 notice listed 110 properties, and an application notice for the fourth quarter was posted on 4 September 2026. Because the list changes, always ask the hotel directly: "Do you take part in the VAT refund for foreign guests?" Sources are linked on our methodology page.

What the refund is worth

For a 200,000 KRW room with a 10% service charge and VAT on both, the VAT is 22,000 KRW. The refund is that figure less the operator's fee, which we do not state because it can change. Use the hotel calculator to see the VAT on your own booking.

Before you count on it

1. Confirm designation with the hotel before booking, in writing if possible.
2. Ask how and when the refund is paid, and what documents are needed (usually your passport).
3. Keep the invoice that shows the VAT line.
4. Do not assume that the service charge is refunded. Ask what base the refund is calculated on.