South Korea VAT Registrations Explained
Updated 2 months ago
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There are two VAT registration schemes available in South Korea, and which one applies to you depends on whether your business has a physical presence in the country.
Scheme 1: Standard VAT Registration
Who this is for: Resident businesses and non-resident businesses that have a permanent establishment (PE) or business place in South Korea.
Scope: Covers all taxable supplies — B2B and B2C, goods and services.
Input tax credits: Allowed. Businesses registered under the standard scheme can claim input VAT credits on eligible business expenses with valid tax invoices.
Currency: Korean Won (KRW)
Key point: If your business establishes a PE in South Korea while currently registered under the simplified scheme, you must migrate to the standard scheme.
Scheme 2: Simplified Business Operator Registration (Foreign E-Service Providers)
Who this is for: Non-resident businesses and foreign corporations without a PE in South Korea that supply electronic or digital services to Korean consumers (B2C). This also applies to marketplace operators that facilitate payment for such services.
Scope: B2C electronic services only. Does not cover goods or B2B supplies.
Input tax credits: Not allowed. This is an important limitation — businesses on the simplified scheme cannot recover input VAT.
Currency: KRW. Foreign currency must be converted to KRW using the Seoul Money Brokerage Services exchange rate as of the last day of the taxable period. VAT payments can be made in USD using the applicable standard exchange rate.
Registration deadline: Foreign businesses must register within 20 days of starting business. Registration is completed online through the NTS HomeTax portal.
Key point: The two schemes cannot coexist. A business registered under the standard scheme does not also hold a simplified registration.
Filing Frequency for Both Schemes
Both schemes require quarterly VAT returns, due on the 25th of the month following the end of each quarter:
Quarter | Filing Deadline |
|---|---|
Q1 (January – March) | April 25 |
Q2 (April – June) | July 25 |
Q3 (July – September) | October 25 |
Q4 (October – December) | January 25 (following year) |
Payment is due on the same date as the filing.
Choosing the Right Scheme
Business Profile | Recommended Scheme |
|---|---|
Based in South Korea (any structure) | Standard VAT Registration |
Non-resident, selling B2C only | Simplified Business Operator Registration |
Non-resident, selling B2B only | No registration required (reverse charge applies) |
Non-resident, selling both B2B and B2C | Simplified Business Operator Registration (for B2C) + reverse charge (for B2B) |
Non-resident, with a PE in Korea | Standard VAT Registration |
How Kintsugi Handles This
Kintsugi supports both registration schemes for South Korea. You can submit a new registration, import an existing registration, and manage quarterly filings directly within the platform.
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