🧾 South Korea VAT Calculator (10%)
Add or remove South Korea's 10% VAT (부가가치세) in one step, for quotes, tax invoices and receipts. Amounts are in Korean won (₩).
Simplified taxpayer VAT estimate
VAT table by supply value (uses the rounding option above)
How to use
- Choose what kind of amount you have. A quote marked "VAT separate" (VAT 별도) is a supply value (공급가액). A card receipt or bank transfer that already includes VAT is a total (합계금액). If you only see the tax line on a tax invoice, choose VAT amount.
- Enter the amount in won. Supply value, VAT and total appear instantly.
- Choose how to handle fractions below ₩1. Korean tax invoices (세금계산서) usually round down.
Korea VAT formulas
| You know | Formula | Example |
|---|---|---|
| Supply value | VAT = supply × 10% | ₩1,000,000 → VAT ₩100,000, total ₩1,100,000 |
| Total | VAT = total ÷ 11, supply = total − VAT | ₩1,100,000 → supply ₩1,000,000 |
| Total | Supply = total ÷ 1.1 | ₩10,000 → ₩9,091 + ₩909 |
| VAT amount | Supply = VAT × 10, total = VAT × 11 | ₩30,000 → ₩300,000 / ₩330,000 |
The most common mistake is taking 10% of the total. 10% of ₩1,100,000 is ₩110,000, but the VAT inside it is only ₩100,000. To remove VAT from a VAT-inclusive price, always divide by 11 to get the VAT, or divide by 1.1 to get the supply value. The same logic works for other countries: with a 20% VAT, divide by 6; with 5%, divide by 21.
Simplified taxpayers (간이과세자)
Small sole proprietors in Korea can register as simplified taxpayers. Instead of paying 10% of sales minus input VAT, they pay sales (incl. VAT) × industry value-added ratio × 10%, minus a credit of 0.5% of purchases backed by tax invoices or card receipts.
| Industry | Value-added ratio | Effective rate on sales |
|---|---|---|
| Retail, recyclable materials, restaurants | 15% | 1.5% |
| Manufacturing, agriculture/forestry/fishing, parcel delivery | 20% | 2.0% |
| Lodging | 25% | 2.5% |
| Construction, transport & storage, information & communications, other services | 30% | 3.0% |
| Finance & insurance services, professional/scientific/technical, business support, real-estate rental | 40% | 4.0% |
- Eligibility: individual businesses whose previous-year sales including VAT were under ₩104 million (since July 1, 2024). For real-estate rental and adult entertainment venues, the limit is ₩48 million.
- Payment exemption: if sales for the tax period are under ₩48 million, no VAT is due, but you still have to file.
- Simplified taxpayers with ₩48 million or more in sales can issue tax invoices and must do so if the customer asks.
Tips
- Quotes: always state "VAT included" or "VAT excluded". On a ₩1,000,000 job, that's a ₩100,000 difference.
- Freelancers without a business registration usually don't charge VAT. Instead, 3.3% is withheld. See the Korea freelancer 3.3% tax calculator.
- Filing deadlines: general taxpayers file in January and July (corporations quarterly). Simplified taxpayers file once a year by January 25.
- VAT-exempt items include unprocessed food (rice, vegetables), medical and education services.
- Tourists can get VAT back on eligible purchases at "Tax Free" stores. Ask for a refund receipt and process it at the airport or the in-store kiosk.
Based on South Korea's Value-Added Tax Act as of 2026, for reference only. Thresholds and industry ratios can change, so check Hometax (홈택스) or the National Tax Service before filing. The simplified-taxpayer estimate ignores other credits such as deemed input tax and the e-filing credit.