Enter a supply value to get 10% Korean VAT and the total, or enter a VAT-inclusive total to work back to the supply value, including why receipts and tax invoices can differ by 1 won. Simplified taxpayers get the VAT they actually owe from the value-added ratio, purchase and card credits and the payment exemption. Everything runs in your browser.
Tax invoices usually take 10% of the supply value and drop anything under 1 won. Some POS and card terminals round instead.
VAT = supply value × 10% → Round down under 1 won
1,000,000 × 10% = 100,000 → 100,000원
1,000,000 + 100,000 = 1,100,000원
A reference calculator for Korean VAT. It does not cover a general taxpayer's quarterly return, other credits such as the deemed input credit or e-invoice credit, apportionment across several business types, or zero-rated and exempt supplies.
In Korea the VAT tax base is the supply value, which does not include VAT (VAT Act, Art. 29). The rate is 10% (Art. 30), so a deal with a supply value of 1,000,000 won carries 100,000 won of VAT and a total of 1,100,000 won. A quote of '1,000,000 won, VAT excluded' means you actually collect 1,100,000 won.
'1,000,000 won, VAT included' means the total is 1,000,000 won, so the supply value is 909,091 won and the VAT 90,909 won. The same headline figure differs by over 90,000 won depending on which you mean, so state it on quotes and contracts.
For simplified taxpayers the term 'supply price including VAT' (gongkeup daega) comes up often. It is the amount with VAT included, and both the simplified tax base and the thresholds (104 million and 48 million won) are measured on it.
When it is unclear whether an amount includes VAT, the supply value is that amount times 100/110 (VAT Act, Art. 29(7)). The law does not say how to treat fractions of a won, so two methods are used in practice.
Receipts and card terminals usually fix the total, round total × 100 ÷ 110 to set the supply value and leave the rest as VAT. Tax invoices set the supply value first and add 10% of it with anything under 1 won dropped. For a total of 99,999 won the receipt method gives a supply value of 90,908 won and the invoice method 90,909 won.
Some totals cannot be produced by the invoice method at all. Rounding down, a supply value of 19 won gives a total of 20 and 20 gives 22, so nothing produces 21. When that happens the calculator shows the nearest totals you can make.
Dividing by 1.1 in a computer also introduces floating-point error: 110,000 ÷ 1.1 comes out as 99,999.99999. This calculator works only in whole won, so that error never appears.
A simplified taxpayer's tax is sales including VAT × the business type's value-added ratio × 10% (VAT Act, Art. 63(2)). The ratios are 15% for retail and restaurants, 20% for manufacturing, 25% for lodging, 30% for construction, transport, information and communications and other services, and 40% for finance, professional services, real estate leasing and similar (Enforcement Decree, Art. 111(2)). The real burden is about 1.5% to 4% of sales.
Purchases backed by tax invoices or card receipts reduce the tax by 0.5% of their VAT-inclusive amount (Art. 63(3)). Sales paid by credit card or cash receipt earn a 1.3% credit, capped at 10 million won a year, through December 31, 2026 (Art. 46). From 2027 it returns to 1% with a 5 million won cap.
If the credits exceed the tax, the excess is not refunded (Art. 63(6)). That is the biggest difference from general taxpayers, who can get a refund in a period with heavy purchases.
A simplified taxpayer whose sales for the year (January to December) are under 48 million won is exempt from paying (VAT Act, Art. 69(1)). Only payment is exempt: you still have to file. If you pay while exempt, the tax office refunds it (Art. 69(4)).
If you opened, suspended or closed during the year, sales for the months you operated are scaled to 12 months, with a partial month counted as one (Art. 69(3)). Earning 25 million won in six months counts as 50 million a year, so you are not exempt.
Simplified taxation applies to individuals whose previous-year sales were under 104 million won (Art. 61(1), Enforcement Decree Art. 109(1)). Crossing it does not switch you right away: you become a general taxpayer from July 1 of the following year. The threshold is 48 million won for real estate leasing and taxable entertainment venues, and some businesses, such as wholesale and licensed professions, cannot use simplified taxation at any size (Enforcement Decree, Art. 109(2)).
Quoting 'VAT excluded' means you collect 1,100,000 won. The tax invoice shows the supply value and the VAT on separate lines.
The same total gives supply values 1 won apart. When books and tax invoices disagree by a won, this is usually why.
The same sales and purchases as a general taxpayer give output VAT minus input VAT of 3,454,540 won, roughly double.
Payment is exempt, but the January return still has to be filed. In a year when sales pass 48 million won, the same calculation is what you pay.
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What it is, who it's for, how it works and why you'd use it.
A Korea VAT Calculator converts between a supply value and a VAT-inclusive total at Korea's 10% VAT rate, and for simplified taxpayers calculates the VAT actually owed from the business type's value-added ratio and whether payment is exempt.
It is for sole proprietors and VAT-registered freelancers in Korea who write quotes and tax invoices, staff who check the supply value on card receipts, and simplified taxpayers who want to know their VAT before filing.
For general taxpayers it multiplies the supply value by 10% to get VAT, and multiplies a total by 100/110 to get the supply value. For simplified taxpayers it multiplies sales by the value-added ratio and 10%, subtracts the 0.5% purchase credit and the card credit, and flags payment as exempt when annual sales are under 48 million won.
Dividing a total by 1.1 can be off by 1 won depending on rounding and order, and a simplified taxpayer's VAT is around 1.5% to 4% of sales rather than 10%. It answers both in seconds before you quote, invoice or file.