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VAT calculator

Work out 10% Korean VAT from the supply value or the total, and the VAT a simplified taxpayer pays.

Calculate from

₩

Supply value1,000,000 won
VAT 10%100,000 won
Total1,100,000 won

VAT is 10% of the supply value with amounts under 1 won dropped, the same as the Hometax e-tax invoice screen. The copy buttons copy digits only, without commas.

Common amounts

  • 10,000 won

    As supply value: VAT 1,000 won, total 11,000 won

    As total: supply value 9,091 won, VAT 909 won

  • 100,000 won

    As supply value: VAT 10,000 won, total 110,000 won

    As total: supply value 90,909 won, VAT 9,091 won

  • 1,000,000 won

    As supply value: VAT 100,000 won, total 1,100,000 won

    As total: supply value 909,091 won, VAT 90,909 won

Simplified taxpayer (gani gwase) VAT

Business type and value-added ratio
₩

For simplified taxpayers the tax period is 1 January to 31 December.

₩

Enter purchases backed by tax invoices, credit card slips or cash receipts issued for business expenses.

Tax to pay800,000 won
Tax before credit900,000 won
Credit for purchase invoices100,000 won
Sales × 15% × 10%
900,000 won
Purchases × 0.5%
− 100,000 won
Tax to pay
800,000 won

How it is calculated

  • VAT is 10% of the supply value (VAT Act art. 30). The law does not say how to treat amounts under 1 won, so the parties may decide. The National Tax Service recommends rounding (interpretation 간세1235-4254). This calculator drops them, like the Hometax e-tax invoice screen.
  • When only a VAT-inclusive amount is known, the supply value is 100/110 of it (VAT Act art. 29(7)). Like the Hometax auto calculation, the supply value is rounded to the nearest won and the rest is VAT.
  • On a VAT return, amounts under 1 won are dropped, and when tax is paid, amounts under 10 won are dropped (National Treasury Management Act art. 47).

Simplified taxpayer rules

  • Tax = sales including VAT × value-added ratio for the business type × 10%, minus 0.5% of purchases backed by tax invoices or card slips (VAT Act art. 63, Enforcement Decree art. 111(2)). If the credit is larger, the tax is 0.
  • If sales for the year are under 48 million won, you do not have to pay. In the year you start, suspend or close the business, sales are scaled to 12 months (VAT Act art. 69).
  • Individual businesses with sales under 104 million won in the previous year are simplified taxpayers (from 1 July 2024). For real estate rental and taxable entertainment venues the limit is 48 million won (VAT Act art. 61, Enforcement Decree art. 109(1)).
  • Mining, wholesale, real estate trading and professional services such as lawyers and tax accountants cannot use the simplified system whatever their sales. Manufacturing, construction and some services qualify only for certain types that mainly serve consumers (Enforcement Decree art. 109(2)).
  • Other credits, such as the credit for issuing card slips or e-tax invoices, are not included.

This is a guide, not tax advice. Check your actual return on Hometax or with a tax accountant.

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