Standard

10%

Other

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:

Quarterly

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: