When a foreign traveler applies a refund of the VAT paid on the purchase of the Selected goods eligible for VAT refund at the Authorized Downtown Refunds Service counter established by a Private tax refund operator in the business place of an Authorized store, he/she shall provide his/her international credit card issued by card issuer with the authorization from an international credit card organization, and shall authorize a Private tax refund operator to pre-deduct 7% of the total amount (VAT inclusive) of a purchase of Selected goods eligible for VAT refund as the security deposit of the Selected goods eligible for VAT refund being carried out of the ROC with the prescribed time period.
When a Private tax refund operator receives a foreign traveler's request for Authorized Downtown Refunds Service under the preceding paragraph , it shall handle according to the following requirements:
1. It shall check if the foreign traveler will be out of ROC within 20 days from the date of claim before receives a foreign traveler's request for Authorized Downtown Refunds Service. If it confirms the foreign traveler will not be out of ROC within 20 days from the date of claim, it shall ask such travelers to apply for a VAT refund through the Authorized Downtown Refunds Service or at an airport or seaport.
2. The balance amount shall be paid to foreign travelers after deducted the handling fee according to the refunded tax amount recorded in the VAT Refund Claim Form, together with the Uniform Invoice issued pursuant to paragraph 2, Article 8(remarked with “Authorized Downtown Refunds Claimed”), prepayment form of Authorized Downtown Refunds for foreign travelers (hereinafter, the "Authorized Downtown Refunds Prepayment Form ") and delivering them to the foreign traveler for retention.
3. Notify the foreign travelers that the VAT refund shall be returned in accordance with related provisions if the Selected goods eligible for VAT refund Purchased being unpacked, used or found exchange of goods without permissions, or not conform to the these Regulations under customs inspection.
4. Notify the foreign traveler that the Selected goods eligible for VAT refund shall be carried out of ROC within 20 days from the date of claim, and check with the refund service counter established by the Private tax refund operator at an airport or seaport for screen if the inspection is required by holding the Authorized Downtown Refunds Prepayment Form.
The format of the Authorized Downtown Refunds Prepayment Form referred to in the preceding paragraph shall be designed by the Private tax refund operator and then submitted to the Ministry of Finance for approval.