Korean VAT calculator (부가가치세)
Korean VAT is a flat 10%. Net × 1.1 = total; total ÷ 11 = the VAT inside it. Simplified taxpayers instead pay sales × their industry's value-added rate × 10%.
How it works
General taxpayers: VAT = net × 10%. From a VAT-inclusive total, VAT = total ÷ 11 and net = total ÷ 1.1. Fractions of a won are customarily dropped.
Simplified taxpayers (prior-year sales under KRW 104M): pay VAT-inclusive sales × the industry value-added rate × 10%, minus 0.5% of purchases backed by tax invoices. Annual sales under KRW 48M are exempt from payment.
Filing: general taxpayers in January and July (corporations quarterly); simplified taxpayers once a year in January.
Assumptions
- Standard 10% rate; exempt and zero-rated supplies excluded
- Simplified-taxpayer rates as revised July 2021
- Simplified taxpayers' 0.5% purchase credit and card-sales credit not applied
- Checked October 2026
FAQ
What is the VAT rate in Korea?
A flat 10% on most goods and services. Some items are exempt (unprocessed food, medical care, education, residential rent) and exports are zero-rated.
How do I remove VAT from a Korean price?
Divide by 11 to get the VAT, or by 1.1 to get the net price. KRW 1,100,000 contains KRW 100,000 of VAT.
Can tourists get Korean VAT back?
Yes, on goods bought at tax-refund shops and taken out of Korea; immediate refunds apply at the counter for purchases under KRW 1M. The tourist tax refund calculator shows the amount.
I'm a foreign freelancer in Korea — do I charge VAT?
If you register a business as a general taxpayer, yes, 10% on your invoices. Many foreign freelancers start as simplified taxpayers, who don't issue VAT invoices if sales are under KRW 48M.