Compendium · Asia · South Korea
South Korea: VAT on digital services
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Not supported by the free-threshold API · Local term: VAT
Last verified: 2026-10-29
Overseas providers of electronic services to Korean consumers must register with NTS (simplified / special rules under VAT Act Art. 53-2) within 20 days of starting business — no revenue threshold for B2C. Standard VAT 10%. Simplified registrants file quarterly and pay by the 25th of the month after each quarter; general input VAT credits are not available
Register from first sale (VAT Act Art. 53-2 simplified)
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Threshold and rates (VAT)
- Free threshold?
- No — Register from first sale (VAT Act Art. 53-2 simplified)
- Amount / measure
- KRW 0
No revenue threshold for overseas B2C electronic-services suppliers — register within 20 days of commencing supplies (VAT Act Art. 53-2) - Window
- From commencing electronic-services supplies to Korean consumers
- Standard rate
- 10.0%
Standard Korean VAT 10% on taxable electronic services to consumers (NTS) - Who must register
- Overseas business operators supplying electronic services to Korean consumers. B2B supplies to Korean VAT-registered businesses generally use reverse charge without supplier simplified registration
- Evidence of location
- Korean rules tax electronic services used in Korea by consumers. A detailed English two-evidence checklist was not located on the NTS English index as of 2026-10-29; keep billing address, IP and payment-country records showing a Korean consumer
- Invoicing
- Charge 10% VAT under the simplified overseas-operator rules; simplified registrants generally cannot claim input VAT
- Filing
- Quarterly VAT returns; pay by the 25th day of the month following each quarter. Currency: KRW
- Effective
- Special VAT rules for overseas electronic-services suppliers (Art. 53-2)
- Authority
- National Tax Service (NTS)
What Botchannels returns
- Ruleset version
2026-10-22.v1- Decision summary
- Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
- Product class
- Digital service
- Support status
- Not supported by the free-threshold API — Register from first sale (VAT Act Art. 53-2 simplified)
How to register
- Self-register online?
- Yes — Overseas electronic-service operators use Hometax simplified / special registration (VAT Act Art. 53-2). A Korean tax agent is optional
- Resident representative / fiscal agent
- Not generally required for simplified overseas electronic-services registration (Art. 53-2). Tax-agent details may be entered if you appoint one
- Regime
- NTS simplified registration for overseas electronic-services operators via Hometax (VAT Act Art. 53-2 / Enforcement Decree Art. 96-2)
Steps (in order)
- Confirm supplies are electronic services to Korean consumers under Art. 53-2 — https://www.nts.go.kr/english/na/ntt/selectNttList.do?bbsId=30699&mi=11210
- Create a Hometax account and select Simplified Business Registration for foreign electronic-service suppliers — https://www.hometax.go.kr/
- Enter business/representative contacts, foreign registration country/address/number, service type, Korean supply start date (within 20 days of starting Korean supplies), and tax-agent details if any
- Receive the simplified registration number; file quarterly VAT via Hometax
Documents
- Online particulars (no separate physical checklist prescribed for simplified registration) — Foreign business registration number/address, service type, start date, contacts. Keep home-country incorporation evidence available if NTS requests it
- Official processing time
- Hometax registration; no single English SLA summarised as of 2026-10-29
- Official fees
- No NTS simplified-registration fee stated in English e-services materials reviewed
- Portal
- https://www.hometax.go.kr/
- Local bank account
- Pay VAT via Hometax / NTS payment channels
- Filing frequency
- Quarterly VAT returns via Hometax
- Payment currency
- KRW
- Input VAT recovery
- Simplified overseas e-services registration is generally pay-only — confirm with NTS
- Portal language
- Korean Hometax; limited English NTS pages
- Penalties
- Korean VAT Act penalties for late registration/filing
Firms offering this service
Non-exhaustive. Not an endorsement. Links checked live on 2026-10-29; confirm current offerings, licences, and fees directly with each firm before engaging
- KPMG Korea — Member firm
- Deloitte Korea — Member firm
- EY Korea — Member firm
Official sources
VAT Act Art. 53-2 (English consolidation)
NTS English — VAT materials index
South Korea registration portal
Last verified: 2026-10-29.
FAQ
- Is there a Korean VAT threshold for foreign e-services?
- No — register within 20 days of starting B2C electronic-services supplies
- Can simplified overseas registrants claim input VAT?
- Generally no
- What is the filing cycle?
- Quarterly returns; pay by the 25th after each quarter
- Is this tax advice?
- No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice