VAT Calculator
Calculate supply amount and 10% value-added tax.
Overview
Value Added Tax (VAT) is an indirect tax levied on the value added at each stage of the production and distribution of goods and services. South Korea applies a flat VAT rate of 10%. The VAT Calculator helps you quickly determine the supply value, VAT amount, and total price.
Formula
VAT = Supply Value x 10%. Total Price = Supply Value + VAT. Reverse calculation: Supply Value = Total Price / 1.1, VAT = Total Price - Supply Value. Example: Supply Value of KRW 1,000,000 yields VAT of KRW 100,000 and Total of KRW 1,100,000.
How to Use
- 1Enter the supply value (excluding VAT) or the total price (including VAT).
- 2Select the calculation direction (supply value to total or total to supply value).
- 3Click Calculate to see the supply value, VAT amount, and total price.
Tips
- ✔Simplified taxpayers (annual revenue under KRW 80 million) pay reduced VAT based on industry-specific value-added ratios (15-40%).
- ✔Exports qualify for a zero-rate (0%) VAT.
- ✔VAT returns are filed semi-annually: Period 1 (Jan-Jun) by July 25, Period 2 (Jul-Dec) by January 25 of the following year.
- ✔Proper tax invoices must be issued to claim input VAT credits.
- ✔Certain services like medical care and education are VAT-exempt.
FAQ
Q. Who bears the 10% VAT burden?
VAT is an indirect tax borne by the final consumer. Businesses collect VAT from consumers and remit it to the government.
Q. What is the difference between general and simplified taxpayers?
General taxpayers pay VAT by deducting input tax from output tax (10%). Simplified taxpayers multiply revenue by an industry-specific value-added ratio and then apply 10%. Businesses with annual revenue under KRW 80 million may register as simplified taxpayers.
Q. When are VAT returns due?
Period 1 final return is due by July 25, and Period 2 final return is due by January 25 of the following year. Corporate taxpayers must also file preliminary returns in April and October.
Q. How do I reverse-calculate the supply value from the total price?
Divide the total price (VAT-inclusive) by 1.1. For example, KRW 110,000 / 1.1 = KRW 100,000 (supply value), with KRW 10,000 as VAT.
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