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Non-resident providers of electronic services have been required to charge VAT on their sales to Korean consumers since 1 July 2015.
The South Korean VAT net includes income on the following services provided electronically:
There is no threshold for VAT on e-services provided by non-residents. An application must be made to the Korean National Tax Service. If the provider uses a marketplace or intermediary to provide and charge for the service, then they are exempted from the obligation to VAT register.
Providers are not required to produce VAT invoices on their B2C sales. VAT returns are submitted on a quarterly basis. They should be filed by the 25th of the month following the reporting quarter end.
Foreign providers are not required to charge VAT on sales to VAT-registered Korean businesses. Instead, the customer should record the transaction in their VAT return through the reverse charge mechanism.
+44 (0)1273 022400