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.
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 are VAT returns due?
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's 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.
Zero-rated vs 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 vs cash receipt?
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.