VAT Calculator

Korean VAT (10%): convert between net amount and total, a general taxpayer's VAT due (output − input − card-sales credit) and a simplified taxpayer's VAT by industry value-added ratio

2026 rules

What to calculate

Amount

Amount (KRW)

Total → net = total ÷ 1.1 (fractions of a won handled as set in the rates panel, rounding by default); VAT = total − net, so the two always add back to the total.

Change the rates 2026 rules

Rate and rounding

VAT rate (%)

Conversion fractions

Card-sales credit

Credit rate (%)

Annual cap (KRW)

Simplified taxpayer

Purchase credit (%)

Exempt below (KRW)

Simplified-tax threshold (KRW)

Same, leasing etc. (KRW)

Tax invoices from (KRW)

Value-added ratio by industry (%)

Retail, restaurants

Manufacturing, farming

Lodging

Construction, transport, ICT

Finance, professional, real estate

Other services

Defaults are Korea's 2026 rules: VAT Act Art. 30 (10%), Art. 46 (card-sales credit 1.3%, capped at 10 million KRW a year — both until 31 Dec 2026; the statute then reverts to 1% and 5 million; a 2026 tax bill now before the National Assembly would instead set 1.2% and 5 million from 2027 to 31 Dec 2029, so this may change), Art. 63 (simplified taxpayers: 0.5% purchase credit, credits capped at the tax), Art. 69 (exempt under 48 million KRW), Enforcement Decree Art. 109 (simplified-tax threshold 104 million KRW) and Art. 111(2) (value-added ratios). The card credit's rate and sunset date change often with tax law revisions, so check the National Tax Service guidance before filing. How to round the net/total split is not set by law and varies by business and software.

0KRW

A reference estimate under Korea's VAT Act, not tax advice. Confirm the real return and payment on Hometax (hometax.go.kr) or with your tax office. Not covered: zero-rated/exempt apportionment, bad-debt tax, deemed input tax, the e-tax-invoice credit, penalties and inventory tax on conversion. Tax amounts drop fractions of a won.

What this tool does

Korean VAT (10%) three ways under the 2026 rules: (1) convert between the net amount and the VAT-inclusive total, (2) a general taxpayer's VAT due (output tax − input tax − card-sales credit) and (3) a simplified taxpayer's VAT (sales incl. VAT × industry value-added ratio × 10% − credits). The rate, credit rates, caps and value-added ratios can all be changed under "Change the rates". These are Korean rules.

How it is calculated

The VAT rate is 10% (VAT Act Art. 30). Net → VAT = net × 10%; total → net = total ÷ 1.1 and VAT = total − net, so the two always add back to the total. The law sets no rule for fractions of a won, so the default is rounding, switchable to round down or up. Example (the page's default): a total of 1,000,000 KRW → net 909,091 + VAT 90,909 (rounding down gives 909,090 + 90,910). For a general taxpayer, tax payable = output tax − input tax; if input tax is larger, the difference is refunded. Individual consumer-facing businesses (prior-year net sales of 1 billion KRW or less) deduct 1.3% of card and cash-receipt sales, up to 10 million KRW a year (until 31 Dec 2026); the credit cannot exceed the tax payable. Example: taxable sales 50 million, deductible purchases 30 million and card sales 22 million → 5,000,000 − 3,000,000 = 2,000,000 minus 286,000 = 1,714,000 KRW. A simplified taxpayer pays sales × value-added ratio × 10%, minus 0.5% of purchases backed by tax invoices and the card credit; total credits are capped at the tax and there is no refund. Example: a restaurant (15%) with sales of 80 million, purchases of 33 million and card sales of 60 million → 1,200,000 − 165,000 − 780,000 = 255,000 KRW. Annual sales under 48 million KRW are exempt from payment.

Net 1,000,000 KRW → VAT 100,000 → total 1,100,000

Total 55,000 → net 50,000 + VAT 5,000 / total 1,000,000 → 909,091 + 90,909 (rounded)

General taxpayer: output tax = taxable net sales × 10%, input tax = deductible net purchases × 10% (fractions of a won dropped)

Card-sales credit = card/cash-receipt sales incl. VAT × 1.3%, capped at 10 million KRW a year and at the tax before the credit — it never increases a refund

Simplified value-added ratios: retail, recyclables, restaurants 15%; manufacturing, farming/forestry/fishing, parcel delivery 20%; lodging 25%; construction, transport & storage, ICT 30%; finance/insurance services, professional/scientific/technical, facility & business support & rental, real-estate services and leasing 40%; other services 30%

Simplified taxpayer: exempt under 48 million KRW of annual sales; prior-year sales of 104 million KRW or more (48 million for real-estate leasing and taxable entertainment venues) make you a general taxpayer from 1 July of the next year

Things to know

General taxpayers file finals for Jan–Jun by 25 July and Jul–Dec by 25 January. Individuals usually pay an interim notice in April and October of 50% of the previous period's tax (none under 500,000 KRW), deducted at the final return; enter it under "Already paid".

Simplified taxpayers file once a year (Jan–Dec) by 25 January. The tax office may assess 50% of the previous year's tax in July.

Input tax on entertainment, non-commercial passenger cars and non-business spending is not deductible. Enter it as "Non-deductible purchases" to see it for reference without subtracting it.

The card-sales credit rate and sunset date have changed often. The current statute gives 1.3% and 10 million KRW until 31 Dec 2026, then 1% and 5 million. A 2026 government tax bill now before the National Assembly (not yet passed) would set 1.2% and 5 million KRW a year from 1 Jan 2027 to 31 Dec 2029, so the rule may change. For returns after that, check the latest law and update the rates panel.

Simplified taxpayers with prior-year sales of 48 million KRW or more must issue tax invoices; below that they issue receipts only.

Not included: zero-rated/exempt apportionment, bad-debt tax, deemed input tax, the e-tax-invoice credit (per invoice, up to 1 million KRW a year) and penalties.

Frequently asked questions

How do I take VAT out of a total?

Net = total ÷ 1.1 and VAT = total − net. For 1,100,000 KRW that is 1,000,000 net and 100,000 VAT. When it does not divide evenly the won fraction is rounded or dropped; the law sets no method, so match your counterpart. The rates panel lets you choose round, round down or round up.

Who gets the card-sales credit, and how much?

Individual (non-corporate) businesses selling mainly to consumers, such as retail, restaurants and lodging, with prior-year net sales of 1 billion KRW or less per place of business, and receipt-only simplified taxpayers. It is 1.3% of card and cash-receipt sales up to 10 million KRW a year (until 31 Dec 2026), and any part above the tax payable is lost. A 2026 bill before the National Assembly would change this to 1.2% and 5 million KRW from 2027, so re-check before 2027 filings.

Can a simplified taxpayer get a refund?

No. If the purchase credit plus card credit exceeds the tax, the excess is disregarded (Art. 63(6)). A business with heavy purchases that needs refunds may be better off as a general taxpayer; discuss it with the tax office or a tax professional.

What is the payment exemption for simplified taxpayers?

If sales including VAT for the tax period (January–December) total under 48 million KRW, payment is exempt (Art. 69). You still file, and a business that opened mid-year is judged on a 12-month equivalent.

Who is a simplified taxpayer?

An individual business with prior-year sales including VAT under 104 million KRW (Enforcement Decree Art. 109). Real-estate leasing and taxable entertainment venues use 48 million, and some sectors such as wholesale and licensed professions are excluded regardless of size. Crossing the threshold makes you a general taxpayer from 1 July of the following year.