- Standard rate 10%; exports of goods and some services are zero-rated.
- Corporations file four times a year, by the 25th of the month after each quarter.
- Electronic tax invoices are the norm — a PDF is not one.
- A company with no sales still files a return.
Every Korean corporation is a general VAT taxpayer from the day its business registration certificate is issued. It charges VAT on Korean sales, reclaims VAT on its purchases and pays the difference — four times a year.
Rates
The standard rate is 10%. Exports of goods and certain services supplied to foreign customers are zero-rated: no VAT is charged, but input VAT can still be reclaimed — which is why exporters often receive refunds.
Electronic tax invoices
Korea runs on the electronic tax invoice (전자세금계산서), issued through the National Tax Service system and reported to it automatically. Corporations must issue them. A supplier’s PDF is not a tax invoice, and without the electronic one, input VAT cannot be reclaimed.
A supplier’s PDF is not a tax invoice.
Returns and deadlines
Each half-year has a preliminary return for its first quarter and a final return for the half. All are due by the 25th of the month after the period.
Refunds
When input VAT exceeds output VAT — typical for exporters and companies in their first months — the difference is refunded. Early refunds are available for exporters and for investment in equipment. Expect questions, and sometimes a visit, before the first big refund.
Questions readers ask
What is the VAT rate in South Korea?
10%. Exports and some services to foreign customers are zero-rated.
How often does a Korean company file VAT?
Four times a year: preliminary and final returns for each half-year.
When are VAT returns due?
By the 25th of the month following each quarter.
Do I file if I had no sales?
Yes, a nil return is still required.