Tax-N-Hyetaek » Guides » Korean VAT for Foreign Business Owners 2026 🇰🇷 한국어

Korean VAT for Foreign Business Owners 2026

D-8 investors, E-7 specialists running a business, F-2 residents — VAT filing made simple.

Korea has a 10% Value Added Tax (VAT) on most goods and services. If you run a business in Korea on D-8 (investment visa), F-2 (long-term resident), F-4 (Korean ethnic), or F-5 (permanent), you must file VAT twice a year. Simplified taxpayers (under KRW 80M sales) file once.

Filing schedule

General taxpayers: 1H (Jan-Jun) by July 25, 2H (Jul-Dec) by Jan 25. Simplified taxpayers: annual filing by Jan 25.

General vs Simplified

Annual sales under KRW 80M = Simplified taxpayer (1.5%-4% VAT, no input credit). Over KRW 80M = General taxpayer (10% VAT, full input credit).

Input VAT credit (가장 중요)

Business-related purchases (office rent, equipment, advertising, business meals, telecom, services) — VAT paid is credited against VAT collected. Keep tax invoices (세금계산서) or use business card.

VAT refund for exports

Goods/services exported = 0% VAT rate. Input VAT on supplies still creditable. Net result: VAT refund. Major reason many small exporters thrive.

Frequently Asked Questions

Q. D-8 visa holders need to file VAT?

A. Yes — D-8 means you operate a business in Korea. VAT filing is mandatory regardless of nationality. Hire bilingual accountant if you do not read Korean.

Q. How does English-language VAT filing work?

A. Hometax UI is partly English. NTS English line 1588-0560 assists. Most foreign-owned businesses hire bilingual 세무사 (tax accountant) — KRW 100-300K per filing.

Q. Can I get VAT refund as a tourist?

A. Tourist VAT refund (Tax-Free Shopping) is for visitors only — you need entry stamp under 6 months. Long-term visa holders cannot claim tourist VAT refund.