South Korea VAT Calculator 2026
South Korea applies a single VAT rate of 10% to all taxable supplies.
Figures last reviewed
South Korea VAT at a glance
- Standard VAT rate
- 10% — ranked 31 of 36 covered here
- Compared with the average
- -6.99 pts — average across the 36 countries covered is 16.99%
- Registration threshold
- 48,000,000 KRW — annual turnover above which registration becomes compulsory
- Rates verified
- 17 August 2026 — checked against the issuing tax authority
How VAT works in South Korea
VAT 10% (single rate)
Calculating South Korea VAT
Start from the price excluding tax
VAT is charged on the net price. At 10%, a net KRW 100 becomes KRW 110.00 once VAT of KRW 10.00 is added.
To work backwards, divide — never subtract
Removing VAT from a gross figure means dividing by 1.1000, not subtracting 10%. Subtracting the percentage from the gross amount understates the net price, and the error grows with the rate.
Registration is threshold-based
Businesses with taxable turnover above KRW 48,000,000 a year must register and charge VAT. Below it, registration is usually voluntary — worth doing when your customers can reclaim the tax.
Worked example at 10%
Adding and removing VAT at 10%
| Component | Adding to a net price | Removing from a gross price |
|---|---|---|
| Starting amount | KRW 100.00 | KRW 1,000.00 |
| VAT at 10% | (KRW 10.00) | (KRW 90.91) |
| Result | KRW 110.00 | KRW 909.09 |
So a net price of KRW 100.00 in South Korea costs KRW 110.00 once VAT is added. Working the other way, a gross price of KRW 1,000.00 contains KRW 90.91 of VAT, leaving KRW 909.09 net.
Computed from the same 10% rate the calculator applies, so this table and the calculator cannot disagree.
Countries with a similar rate
South Korea VAT questions
What is the VAT rate in South Korea?
The standard rate is 10%, and it applies to all taxable supplies — South Korea has no reduced rate. That places South Korea 31 of 36 of the countries covered here, 6.99 points below the 16.99% average.
How do I remove VAT from a price in South Korea?
Divide the gross amount by 1.1000. At 10%, a gross KRW 1,000 works back to KRW 909.09 net with KRW 90.91 of VAT. Subtracting 10% from the gross figure is the common mistake and gives the wrong answer.
When do I have to register for VAT in South Korea?
Once taxable turnover passes KRW 48,000,000 a year. Registering voluntarily below the threshold lets you reclaim input tax, which usually pays off if you sell mainly to other registered businesses and costs you if you sell to consumers.
Which countries have higher and lower rates than South Korea?
Of the countries covered here, Finland has the highest standard rate at 25.5% and United Arab Emirates the lowest at 5%. South Korea sits at 10%.