Korea's Value-added Tax (VAT) is applied to applicable transactions. Below are the important details regarding the implementation of Korea VAT:
Country: Korea
Tax Name: Value-added Tax
Tax Short Title: VAT
Tax Rate: 10%
Tax Type: Handling Fee, Product, Commission, and Disbursement Fees
Illustration:
Korean Seller & Korean Buyer
Seller: KRVAT on Commission & Disbursement Fee
Buyer: KRVAT on Handling Fee (Exemption: No KRVAT on Product when both Buyer & Seller are Korean)
Non-Korean Seller & Korean Buyer
Seller: No KRVAT
Buyer: KRVAT on Product & Handling Fee
Korean Seller & Non-Korean Buyer
Seller: No KRVAT
Buyer: No KRVAT
(Note: If Non-Korean Buyer is from the UK/EU, Korean Seller will be subject to UK/EU VAT on Seller Commission)
Non-Korean Seller & Non-Korean Buyer
Seller: No KRVAT
Buyer: No KRVAT