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VAT Refund Eligible Vehicles in Korea: A Comprehensive Guide

When it comes to business operations, every penny counts.

In Korea, certain vehicles are eligible for a Value Added Tax (VAT) refund, providing significant savings for businesses while claiming back 10% vat for purchasing vehicle, fuel(Gasoline, LPG, Diesel), repair cost, supplies and also lease fee. This article will explore the types of vehicles that qualify for a VAT refund and how they can benefit your business.

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Eligible Vehicles

The Korean government has outlined specific criteria for vehicles to be eligible for a VAT refund. These include:

  1. Commercial Vehicles: These are vehicles used for business purposes. They are typically larger and designed to carry goods or passengers for hire.

  2. Passenger Cars with 9 or More Seats: These vehicles are designed to carry a large number of passengers. They are often used for public transportation or private hire services.

  3. Vans and Trucks: These vehicles are designed to transport goods. They come in various sizes and capacities, including cargo vans.

  4. Small passenger Cars (K-Cars): These are vehicles with an engine displacement of 1,000cc or less, a length of 3.6m or less, and a width of 1.6m or less. They are popular for their fuel efficiency and ease of parking.(Gasoline,

Popular Models

Several models are popular among businesses for their features and eligibility for VAT refund. These include:

  1. Morning, Spark, and Ray: These are small cars, also known as K-cars, popular for their fuel efficiency and compact size.

  2. Carnival (9 seats or more): This is a multi-purpose vehicle (MPV) that is popular for its spacious interior and comfortable ride.

  3. Starex (9-12 seats): This is another popular MPV, known for its durability and versatility.

  4. Turismo (9 seats or more): This is a luxury MPV, popular for its comfortable ride and premium features.


Understanding the types of vehicles eligible for a VAT refund can help businesses make informed decisions when purchasing vehicles. Whether you’re looking for a small car for city driving or a large vehicle for transporting goods or passengers, there’s a VAT refund eligible vehicle to suit your needs.

Please note that this is a general guide and the specifics may vary depending on the current regulations. Always consult with a tax professional or the relevant government department for the most accurate information.


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