Looking at the proposed amendment to the tax law, first, the amendment to the VAT raised the standard amount of simplified taxation from 48 million won to 80 million won in annual sales. Under the VAT Act, a general taxable person with sales of 80 million won or more must pay 10% of the value added by subtracting purchases from sales as VAT. On the other hand, simple taxpayers apply 10% VAT to the value-added amount (5-30% of sales) determined by industry. As the value-added amount is set by industry, the tax burden is greatly reduced when sales increase within the range of 80 million won.
Source: mk.co.kr
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