South Korea VAT Calculator
How Much Is VAT in South Korea?
The standard VAT rate in South Korea is 10% in 2026. Other rates: 0% — Exports, services supplied abroad, international transport, certain foreign-currency-earning services. Locally the tax is called Value Added Tax (VAT, bugagachise). Standard VAT/GST rates worldwide range from around 5% to 27%.
How to calculate South Korea VAT
To add 10% VAT to a net (tax-exclusive) price, multiply it by 1.1. To remove VAT from a gross (tax-inclusive) price, divide it by 1.1.
- Add VAT: KRW 100 net × 1.1 = KRW 110 gross (that is KRW 10 of VAT)
- Remove VAT: KRW 110 gross ÷ 1.1 = KRW 100 net (that is KRW 10 of VAT)
Use the South Korea VAT calculator above for any amount, or compare South Korea with every other country in our VAT rates by country table.
South Korea VAT Rates Overview
Every VAT rate currently in force in South Korea
Current VAT Rates (2026)
| Rate type | Rate | Applies to |
|---|---|---|
| Standard rate | 10% | Most goods, services, imports and electronic services from foreign suppliers |
| Zero rate | 0% | Exports, services supplied abroad, international transport, certain foreign-currency-earning services |
VAT History and Local Rules in South Korea
How the rates got here, and country-specific points to watch
Key VAT milestones
- 2026: Tourist VAT refund on cosmetic and aesthetic procedures ended from 1 January 2026
- 2024: Simplified taxpayer threshold raised to KRW 104 million annual turnover
- 2019: VAT on foreign electronic services extended to cloud computing and online advertising
- 2015: Foreign suppliers of electronic services to consumers required to register and charge VAT
- 1977: VAT introduced at 10% on 1 July 1977
Is the VAT rate the same everywhere in South Korea?
Yes, 10% VAT applies uniformly throughout South Korea, including Jeju; there are no regional VAT rates.
Good to know
Consumer prices in Korea include VAT; receipts show the 10% VAT portion.
Simplified taxpayers (small individual businesses under KRW 104 million turnover) pay VAT at reduced industry-specific value-added ratios rather than charging full 10% input-output VAT.
Jeju Island offers duty-free shopping for domestic travellers, but the VAT rate itself is the same 10% nationwide.
Zero-Rated and Exempt Supplies in South Korea
The difference matters: zero-rating keeps input-VAT recovery, exemption does not
Zero-rated supplies (0%)
VAT is charged at 0%, but the seller can still recover input VAT on related costs:
- Exports of goods
- Services supplied outside Korea
- International transport by ship or aircraft
- Certain services earning foreign currency
- Certain agricultural and fishing machinery and inputs for farmers
VAT-exempt supplies
No VAT is charged, and the seller generally cannot recover input VAT on related costs:
- Unprocessed foodstuffs and agricultural, livestock and fishery products
- Medical and health services
- Licensed education services
- Financial and insurance services
- Supply of land and residential rent
- Books, newspapers and magazines
- Public transport (excluding express buses, taxis and air travel)
South Korea VAT Registration & Compliance
Key facts for businesses registering for and reporting VAT in South Korea.
| Local name | Value Added Tax (VAT, bugagachise) |
|---|---|
| VAT number format | Business registration number: 10 digits (e.g. 123-45-67890) |
| Registration threshold | No VAT registration threshold: all businesses register; individuals with annual turnover under KRW 104 million may use the simplified taxpayer regime |
| Non-resident businesses | Foreign suppliers of electronic services to Korean consumers must register under a simplified business registration, with no threshold |
| Filing frequency | Two six-month tax periods (January-June, July-December) with preliminary quarterly returns for corporations |
| Filing and payment deadline | 25th day of the month after each period: 25 April, 25 July, 25 October and 25 January |
| E-invoicing / reporting | Electronic tax invoices mandatory for corporations and for individual businesses with prior-year supply value of KRW 80 million or more, transmitted to the NTS |
| Tax authority | National Tax Service (NTS) |
Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with National Tax Service (NTS) before relying on them.
Cross-Border Sales and Refunds in South Korea
Selling into the country from abroad, and getting VAT back
Cross-border rules
Digital services and e-commerce: Foreign suppliers of electronic services (games, video, music, apps, cloud computing, online advertising) to Korean consumers must obtain simplified business registration and charge 10% VAT, with no threshold; B2B supplies are reverse-charged.
Tourist VAT refunds: Yes: foreign tourists can reclaim VAT on purchases of at least KRW 15,000 at tax refund shops, with immediate refunds at the till for purchases up to KRW 1 million (KRW 5 million per trip).
For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.
Compare VAT Rates
VAT rates in neighboring and similar economies
Nearby Countries
🇦🇺 Australia
Standard Rate: 10%
🇳🇿 New Zealand
Standard Rate: 15%
🇯🇵 Japan
Standard Rate: 10%
🇨🇳 China
Standard Rate: 13%
Frequently Asked Questions
Common questions about VAT in South Korea
What is the current VAT rate in South Korea?
The standard VAT rate in South Korea is 10% in 2026. Other rates in force: 0% (zero rate). See the rates table above for exactly what each rate covers.
How do I calculate VAT in South Korea?
To add 10% VAT, multiply the net price by 1.1. To remove it from a VAT-inclusive price, divide by 1.1; the difference is the VAT. The calculator at the top of this page does both.
What is the minimum purchase for a tax refund in Korea?
Foreign tourists can claim a VAT refund on purchases of at least KRW 15,000 at participating tax refund shops. Immediate refunds are available for purchases up to KRW 1 million, with a KRW 5 million limit per trip.
Is VAT included in prices in Korea?
Yes. Retail prices in Korea include 10% VAT, so the displayed price is what you pay; business invoices show VAT separately.
When are VAT returns due in Korea?
Returns are due by the 25th day after each quarter or half-year: 25 April, 25 July, 25 October and 25 January. Corporations file preliminary quarterly returns; final returns cover each six-month period.
Who needs to register for VAT in South Korea?
Registration threshold: No VAT registration threshold: all businesses register; individuals with annual turnover under KRW 104 million may use the simplified taxpayer regime. Foreign businesses: Foreign suppliers of electronic services to Korean consumers must register under a simplified business registration, with no threshold.
Sources
Official and professional references used for this page
Where these figures come from
Last reviewed on 27 September 2026.