Taxes
South Korea — Tax: Vat
South Korea charges a 10% VAT on goods and services, zero-rates exports, and exempts basic farm products and health services.
VerifiedProfessional tax guide — not a government sourcePwC Worldwide Tax Summaries — Korea, Value-added taxLast reviewed: 2026-10-23
Why this matters
Understanding VAT in South Korea is crucial for foreign individuals and businesses to avoid penalties, fines, and tax audits.
Key facts
- All corporations and individuals supplying goods or services are subject to 10% VAT, whether for profit or not.
- Exports are zero-rated.
- Certain basic commodities such as farm products, health services and government transactions are exempt.
- Check the National Tax Service for sector-specific exemptions.
Steps
- Registration for VAT — Foreign individuals and businesses may need to register for VAT if their annual sales exceed KRW 50 million (approximately USD 43,000). The registration process typically involves submitting required documents, such as a business license and proof of identity, to the National Tax Service.