Korea's Value-added Tax (VAT) will be implemented on applicable transactions. Please take note of the following 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 & Disbursement Fees
Illustration:
i. Korean Seller & Korean Buyer
- Seller : KRVAT on Commission & Disbursement Fee
- Buyer : KRVAT on Handling Fee (Exemption: No KRVAT on Product when Buyer & Seller is Korean)
ii. Non-Korean Seller & Korean Buyer:
- Seller : No KRVAT
- Buyer : KRVAT on Product & Handling Fee
iii. Korean Seller & Non-Korean Buyer
- Seller : No KRVAT
- Buyer : No KRVAT (Note: If Non-Korean Buyer is from UK/EU, Korean Seller will be subjected to UK/EU VAT on Seller Commission)
iv. Non-Korean Seller & Non-Korean Buyer
- Seller : No KRVAT
- Buyer : No KRVAT