VAT Calculator

VAT is an indirect tax levied on the value added at each stage of the production and distribution of goods and services. In Korea, the standard rate is 10%, ultimately borne by the final consumer.

The supply amount is the price of goods or services excluding VAT. The total amount (공급대가) is the final payment amount including VAT. Total Amount = Supply Amount + VAT (10%).

The zero rate applies to exports, international shipping and aviation services, and diplomatic exemptions. While the output tax is 0%, input tax credits can still be claimed — unlike a full exemption.

A VAT exemption removes the tax entirely (no input tax credit allowed), while the zero rate sets the tax at 0% (input tax credit is still claimable). The zero rate is more beneficial for businesses.

General taxpayers file semi-annually: Period 1 (Jan–Jun, due July 25) and Period 2 (Jul–Dec, due January 25 of the following year). Simplified taxpayers file once a year (January 25).

Businesses with annual sales below 104 million KRW qualify as simplified taxpayers with reduced VAT obligations (sector-specific value-added ratios apply). Above this threshold, the full 10% rate applies as a general taxpayer.

The key is to collect tax invoices and cash receipts for all business-related expenses to maximize input tax deductions. Registering a dedicated business credit card is also important.