This guide provides an overview of VAT in South Korea, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within South Korea.
South Korea uses VAT heavily to fund social welfare programs.
Foreign businesses incurring expenses in South Korea? You might be eligible for a VAT refund.
An entity would generally be able to apply for a refund of VAT in South Korea if it is not established in South Korea, it is not registered for VAT in South Korea and does not make taxable supplies that would be subject to VAT in South Korea. The entity would also need to be established in a country that allows reciprocal treatment regarding VAT refunds to South Korean entities.
An application for a refund of VAT in South Korea would need to be submitted in hard copy to the South Korea VAT Authority and should include all the required documents.
An application for a refund of VAT in South Korea should exceed KRW 300,000.00. Only a single (annual) claim can be submitted.
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