- South Korea’s 2026 Tax Reform Proposal includes VAT and tax administration changes announced on August 3, 2026.
- Tax invoice fields would be relabeled: “date of preparation” becomes “date of supply,” and “date of supply” becomes “date of issuance.”
- New input VAT recovery rules are proposed for qualifying autonomous passenger vehicles used in R&D.
- The reform also updates cross-border VAT rules and introduces customs compliance programs.
- Small business VAT relief measures, including deduction limits and credit card sales tax credit rates, would be gradually normalized; legislative notice runs through August 20, 2026, with National Assembly submission planned before September 3, 2026.
Source: globalvatcompliance.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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