Korea — Value-added tax (VAT)
|General VAT Rate||Other Rates||Local Currency|
Korea's general VAT rate is 10%, with other rates including 0% that can apply to certain transactions. The Value-added tax (VAT) is administered by the National Tax Service in Seoul.
Visitors to Korea can qualify for a VAT refund on all purchases made for export - learn more about Korea VAT refunds here.
Korea's consumption tax is called the Value-added tax (VAT), locally known as Boo-ga-ga-chi-se, which was introduced in July 1977.
Korea VAT rates for 2017
- Zero-rated and exempt
Korea VAT number format
Businesses in Korea that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the National Tax Service, and will follow a certain format. The VAT number format is 000-00-00000 (showing tax office location, legal entity type and serial number).
Korea VAT return periods
Businesses in Korea that are required to collect tax from consumers must file regular tax returns with the National Tax Service in Seoul. Korea's VAT return periods are:
None (except for simplified taxation)
Individual businesses with prescribed categories and with turnover less than KRW48 million in previous calendar year
Recovery of VAT by non-established businesses
Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Korea are required to collect taxes from the consumer.
Korea VAT Refunds
Korea has a VAT refund program that allows tourists and others to receive a refund of any Korea VAT paid on goods purchased in Korea that are being exported from the country.
The minimum purchase amount needed to claim a VAT refund is €30000.00 Euros (which would yield a VAT refund of about €3000). SalesTaxHandbook has detailed information about Korea's VAT refund program:Learn More About Korea VAT Refunds
Korea Tax Sources & Citations
- EN: Korea Value Added Tax
- RU: НДС Южная Корея
- CN: 韩国 增值税
- Korea National Tax Service (accessed 2017)
- Ernst & Young global VAT tax study, Korea (updated 2017)
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