- South Korea amended VAT Law to clarify reporting obligations for foreign digital platforms and gateways.
- Effective July 1, 2025, foreign intermediary service providers must submit monthly transaction details to the Korean tax authority.
- Reporting includes information on transaction parties, number of transactions, and transaction amounts.
- Amendments specify that reporting does not include goods or services supplied by foreign sellers through digital platforms.
- Penalties for non-compliance can reach up to KRW 20 million, approximately USD 14,300.
- The amendments align reporting requirements for domestic and foreign digital intermediary services.
- The focus is on intermediary roles rather than cross-border supply chains.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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