- South Korea imposes a 10% VAT on a wide range of digital services provided by foreign businesses, with no minimum revenue threshold for B2C transactions.
- Foreign digital service providers must register for VAT from their first supply to Korean consumers and can use a simplified registration system.
- Digital platforms and intermediaries are responsible for VAT obligations and additional transaction reporting, especially after 2019 and 2025 updates.
- Registered foreign businesses must file quarterly VAT returns and pay in Korean won via the National Tax Service portal.
- Non-compliance results in a 1% penalty on the total value of unregistered e-services supplied.
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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