[VAT] Tax Rate for services supplied overseas (How to Qualify for the 0% VAT Tax Rate -2 )

The standard VAT (Value Added Tax) rate in Korea is 10%, and it applies to almost all goods and services provided by your company to clients within the country, except for certain non-VAT items. Consequently, when sending invoices to clients, your company adds a 10% VAT to the price of its goods and services.

However, what about providing service outside of Korea?

Here's what I'm going to tell you.

1.Any services supplied overseas (outside of Korea) are subject to a 0% VAT tax rate

Korean companies, including foreign-invested ones with a business entity in Korea, are not subject to VAT tax rates when they provide services outside of Korea. This is because Korean tax law does not apply outside of Korea.                        The crucial factor is that the place where the services are provided is abroad. so When a Korean company provides services to a foreign company in Korea, the 0% VAT rate does not apply."

 

2.There is no obligation to issue a tax invoice for services provided outside of Korea

Unlike services provided within Korea, where issuing a tax invoice is mandatory, when services are provided outside of Korea to foreign individuals or corporations with no business in Korea, there is no obligation to issue a tax invoice.

 

3.Companies should prepare documents for service supply to prove that the services are provided overseas. This includes preparing a contract and submitting it to the Korea tax office.

 

 

[VAT] Tax Rate for Exports in Korea (How to Qualify for the 0% VAT Tax Rate -1 )

 

 

Thank you for read my article! I hope it helps.

If you want to see more information about Korea tax and accounting, please follow us.

And if you need help for your tax filing or accountung or looking for CPA in Korea, don't hesitate to contace us

G-tax / Certified Tax Accountant / Steven Yang

+82 10 9599 7152

steven@g-tax.kr

www.g-tax.kr

you can contact me through the information in the name card.

Or Please fill in the below form

G-tax (Tax & Accounting service)