A VAT refund guide to South Korea
Which countries have reciprocity with South Korea?
Learn more about how reciprocity works within VAT by clicking below.
What expenses are claimable in South Korea?
Entertainment
Events
Travel Related
General Expenses
Additional Information
| Current VAT Rate | 10% |
| Categories | Entertainment, Events, Travel Related, General expenses |
| VAT in local language | Bugagachise | 부가가치세 |
| VAT number format | 123-12-12345 (10 numerical digits) |
| Exemptions | Entertainment, Hiring means of transport, Fuel, Public transport, Taxis |
| Key Deadlines | 30th June |
| Threshold |
Non-Simplified: No threshold Simplified: Not applicable to this VAT scheme Super Simplified: Not applicable to this VAT scheme |
| Electronic Invoicing | Electronic invoicing is mandated for B2B, B2G, and B2C transactions in this country |
Frequently Asked Questions
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.
Generally, if VAT in South Korea was incorrectly charged on an invoice, the invoice would not be able to be included in a refund of VAT in South Korea. The entity would need to contact the supplier to have the incorrectly charged VAT in South Korea refunded.
Processing times for a refund of VAT in South Korea can vary. Businesses reclaiming VAT in South Korea can expect it to take anywhere from a few months to a year, depending on the claim complexity and submission accuracy.
Explore VAT reclaim opportunities in
Nearby Countries
Japan
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