South Korea VAT Rate 2026: 10% Standard Rate

How Much Is VAT in South Korea?

The standard VAT rate in South Korea is 10% in 2026, with no reduced rates. It applies to most goods and services sold in South Korea. 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.

Current VAT Rates

Historical VAT Rate Changes

• 2026: Current standard rate in force
• 1977: VAT introduced at 10%

Economic Impact

VAT contributes approximately 20-30% to South Korea's total tax revenue. The current rate structure balances revenue generation with economic competitiveness within the Asia-Pacific region.

Zero-Rated Items

The following items are zero-rated for VAT in South Korea:

• Exports of goods and services
• International transportation
• Some basic food items
• Children's clothing
• Books and newspapers
• Prescription medications

VAT Exempt Items

The following are exempt from VAT in South Korea (no VAT charged, no input VAT recovery):

• Financial services
• Insurance services
• Healthcare and medical services
• Education and training
• Postal services
• Charitable activities

Reduced Rate Applications

Items subject to reduced VAT rates in South Korea:

• No reduced rates apply in this country

South Korea has no threshold — all businesses must register for VAT, though small simplified taxpayers face lighter obligations. Always confirm current thresholds and deadlines with the National Tax Service (NTS), as they are reviewed periodically.

VAT Registration

• Registration Threshold: None — all businesses register
• Voluntary Registration: Available below threshold
• Registration Process: Online via tax authority website
• Processing Time: Typically 2-4 weeks

VAT Returns and Payment

• Filing Frequency: Quarterly
• Filing Deadline: End of month following period
• Payment Methods: Bank transfer, online payment
• Late Filing Penalties: Varies by amount and delay

Cross-Border Trade

Special considerations for international transactions:

• Intra-EU Trade: Not applicable (non-EU country)
• Imports: VAT payable at point of entry
• Exports: Generally zero-rated
• Digital Services: Special rules may apply

For background on how the buyer accounts for VAT on intra-EU and cross-border B2B supplies, see the reverse charge mechanism. For B2C digital sales and low-value imports, see VAT on digital services and cross-border e-commerce.

Nearby Countries

What is the current VAT rate in South Korea?

The standard VAT rate in South Korea is 10% as of 2026. This applies to most goods and services unless they qualify for reduced rates or exemptions.

How do I calculate VAT in South Korea?

To add VAT: multiply the net amount by 10%. To remove VAT from a gross amount: divide by 1.10. Use our calculator above for instant results.

Who needs to register for VAT in South Korea?

South Korea has no threshold — all businesses must register for VAT, though small simplified taxpayers face lighter obligations.

Can I reclaim VAT in South Korea?

VAT-registered businesses can generally reclaim input VAT on business purchases. Non-EU tourists may claim VAT refunds on qualifying purchases when leaving the country — see our guide to VAT refunds for tourists and non-resident businesses.