Korea VAT Calculator Value-Added Tax Act · Apr 2026
Split supply price and gross both ways — 10% standard, 1.5–4% simplified, zero-rated for exports, exempt for medical/education/finance. Auto receipt memo and rounding policy included.
Advanced — rounding policy
How it works
- General (10%):
- Supply → Gross: VAT = supply × 10%, Gross = supply + VAT
- Gross → Supply: VAT = gross × 10/110, Supply = gross − VAT
- Simplified (1.5–4%): Payable = gross sales × value-added rate × 10%
- 15% — Retail, food service, recyclables
- 20% — Manufacturing, agriculture, small freight
- 25% — Lodging
- 30% — Construction, transport/storage, IT/comms
- 40% — Finance, professional/scientific, real-estate leasing, other
- Zero-rated (0%): Output VAT is 0, supply price equals gross. Input VAT refunds remain available (exports, international transport).
- Exempt: No VAT charged. Issue 계산서 (not 세금계산서). No input VAT refund. Healthcare, education, finance.
- Rounding: NTS recommends rounding to 1 KRW. Floor-to-1 (vendor) and floor-to-10 (procurement) are also used by mutual agreement.
※ Simplified taxpayers with prior-year gross sales ≥ 48M KRW must issue tax invoices (since the 2021 VAT Act amendment). Below 48M KRW, VAT is waived and only receipts are issued.
📌 Official Sources · References
- Korea National Law Information Center — Value-Added Tax Act · Legal basis for general 10% VAT, simplified taxpayer rates (15-30% by industry), and zero-rated exports
- National Tax Service (NTS) — VAT Filing Guide · Quarterly VAT filing (Jan/Jul for individuals, Apr/Oct for corporations) + advance notice procedures (☎ 126)
- NTS Hometax — VAT Filing & Electronic Tax Invoice · Official channel for VAT e-filing and electronic tax invoice (세금계산서) issuance
This calculator covers general 10% VAT + simplified taxpayer rates. Industry-specific value-added rates for simplified taxpayers vary by business code on your registration certificate. Verify with NTS Hometax or a licensed tax accountant (세무사) before filing or issuing tax invoices.
FAQ
Who pays VAT in Korea?
Anyone supplying goods/services in Korea. Standard 10% (since 1977). Exporters: zero-rated (0% output, full input refund). Medical/education/finance: exempt — no VAT in or out.
When do I file VAT returns in Korea?
Sole proprietors (general): twice a year — Jul (Jan–Jun) and Jan (Jul–Dec). Corporations: 4× (adds Apr/Oct pre-filings). Simplified: once in January for the prior year. Filing window: 1st–25th.
What is the simplified taxpayer threshold?
2024+: prior-year revenue < 140M KRW (~100K USD) qualifies. They pay 1.5–4% (industry rate × 10%) instead of 10%. Below 48M KRW, VAT is fully waived.
What is the difference between zero-rated and exempt?
Zero-rated: 0% output VAT but you can still claim input VAT refunds (exports). Exempt: no VAT either way (healthcare/education/finance) and exempt firms issue 계산서, not 세금계산서.
Tax invoice (세금계산서) vs cash receipt (현금영수증) — which do I need?
B2B with input-VAT claim: request a 세금계산서 (tax invoice). B2C: a 현금영수증 (cash receipt with phone or business reg #) suffices. Credit-card receipts also qualify as deduction proof.