VAT Act §30
VAT Calculator
Extract supply value and VAT from a tax-inclusive price, or compute filing tax for general / simplified Korean taxpayers — including industry value-added rates.
Result
VAT
10,000 KRW
Steps
- 1Total 110,000 × 10/11 = supply 100,000, VAT 10,000
Source: VAT Act §30 (10% rate), §63 (simplified taxpayer rates). For reference only — actual filing requires deductible input verification and exempt-sales segregation.
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What this tool does
The Korean VAT calculator covers four calculation modes based on Value-Added Tax Act Article 30 (rate: 10%). 'Add VAT' takes a supply value (tax-exclusive) and adds 10% to produce the total price; 'Extract VAT' reverse-calculates the supply value and VAT from a VAT-inclusive amount. 'General taxpayer return' subtracts input tax from output tax to arrive at the net amount payable. 'Simplified taxpayer' applies the industry-specific value-added rates in Enforcement Decree §111 (15% for retail and restaurants up to 40% for finance and other services) to compute the simplified payable amount. All amounts are truncated to the nearest won, matching the NTS (Hometax) filing standard.
Who uses this
- Freelancers / business owners: verify supply value and VAT before issuing a tax invoice
- Consumers: back-calculate how much VAT is embedded in a receipt total
- General taxpayers: pre-estimate output tax minus input tax before a quarterly VAT return
- Simplified taxpayers: simulate the annual payable amount using the applicable industry value-added rate
- Exporters / importers: confirm whether a transaction is zero-rated or exempt and separate the taxable amount
How to use (3 steps)
- 1Choose the calculation type: 'Add VAT' (enter the tax-exclusive price), 'Extract VAT' (enter the VAT-inclusive total), 'General taxpayer return' (enter sales total and optional purchase amount), or 'Simplified taxpayer' (enter the sales total and select your industry).
- 2Enter the amount in Korean won. For the general taxpayer mode, entering the optional 'purchase supply value' will automatically compute the deductible input tax.
- 3Click 'Calculate' to see the supply value, VAT, and total (or net payable amount) along with the step-by-step calculation breakdown.
Formula & legal basis
[Add VAT (add mode)] VAT = supply value × 10% (truncated to nearest won) Total price = supply value + VAT [Extract VAT (extract mode)] Supply value = total price × 10 ÷ 11 (rounded to nearest won) VAT = total price − supply value [General taxpayer payable (general mode)] Output tax = sales total × 10 ÷ 11 Input tax = purchase supply value × 10% Net payable = output tax − input tax [Simplified taxpayer payable (simple mode) — VAT Act §63, Enforcement Decree §111] Value added = sales total × industry value-added rate Payable = value added × 10% Industry value-added rates (effective 2021-07-01): Retail, restaurants 15% Manufacturing, agriculture, courier 20% Lodging 25% Construction, transport, IT 30% Finance, real-estate rental, other services 40% ※ Legal basis: VAT Act Article 30 (rate 10%)
Example scenarios
Example 1: Freelance service fee of ₩1,100,000 — splitting supply value and VAT
Extract mode, amount ₩1,100,000. Supply value = 1,100,000 × 10 ÷ 11 = ₩1,000,000; VAT = ₩100,000. The tax invoice should read: supply value ₩1,000,000 / tax ₩100,000 / total ₩1,100,000.
Example 2: General taxpayer quarterly return — sales ₩22,000,000, purchases ₩5,500,000
General mode. Output tax = 22,000,000 × 10 ÷ 11 = ₩2,000,000. Input tax = 5,500,000 × 10% = ₩550,000. Net payable = ₩2,000,000 − ₩550,000 = ₩1,450,000.
Example 3: Restaurant simplified taxpayer, annual sales ₩40,000,000
Simplified mode, industry 'retail / restaurants (15%)'. Value added = 40,000,000 × 15% = ₩6,000,000. Payable = 6,000,000 × 10% = ₩600,000. Under the general taxpayer regime, output tax would have been roughly ₩3,636,364 (before input tax deduction), illustrating the substantial benefit of simplified taxpayer status.
Frequently asked questions
Why does the formula use '×10÷11' instead of '÷1.1' to extract the supply value?
The two are mathematically equivalent, but multiplying by the integer ratio 10/11 avoids floating-point errors. For example, dividing 11,000 by 1.1 can return 9,999.999...998 in some environments instead of the exact 10,000. Using integer numerator and denominator eliminates that rounding artefact before the final truncation step.
What is the difference between VAT-exempt and zero-rated?
VAT-exempt transactions (medical, education, unprocessed agricultural products, etc.) charge no VAT and cannot reclaim input tax. Zero-rated transactions (exports, etc.) also charge 0% VAT on sales but are fully entitled to input tax refunds. This calculator only handles standard 10% taxable transactions. Do not use it for exempt or zero-rated supplies.
When are Korean VAT returns due?
General taxpayers file twice a year: the first half (Jan–Jun) by 25 July, and the second half (Jul–Dec) by 25 January of the following year. Preliminary returns are filed in April and October but are often payment-only. Simplified taxpayers file once a year by 25 January.
What is the sales threshold for simplified taxpayer status?
Since the July 2021 revision, a business with prior-year total supply value below ₩80,000,000 qualifies as a simplified taxpayer. Above that, the business must switch to general taxpayer status from the following year. Real-estate rental and entertainment venues have a lower threshold of ₩48,000,000.
Who is required to issue electronic tax invoices?
General taxpayers must issue a (electronic) tax invoice for every taxable supply. Simplified taxpayers with annual supply value of ₩48,000,000 or more must also issue electronic tax invoices. Below ₩48,000,000, a simplified receipt may substitute.
Is the VAT return the same as the income tax return?
No. VAT is an indirect tax collected on sales and remitted to the tax authority. Income tax (comprehensive income tax) is a direct tax levied on net profit and is filed every May. Freelancers and business owners must file both separately.
Cautions
- •This calculator handles standard-rated (10%) transactions only. Do not use it for VAT-exempt (medical, education, etc.) or zero-rated (export, etc.) supplies.
- •All amounts are truncated to the nearest won following the NTS Hometax filing standard. Minor differences may arise from rounding policies used by card companies or individual businesses.
- •The simplified taxpayer industry value-added rates are based on VAT Enforcement Decree §111 as of 2021-07-01. They are subject to change upon legislative revision.
- •Results are for reference only. Confirm your actual tax liability via NTS Hometax or a licensed tax accountant.
- •This tool does not automatically exclude non-deductible input tax items (e.g., entertainment expenses, non-business purchases). Assess deductibility separately before entering your purchase amount.
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Last reviewed: 2026-06-17
VAT Act §30
10% on supply of goods and services. Supply value = total ÷ 1.1. Businesses file by netting sales tax against input tax.
Simplified taxpayer
Prior-year sales under KRW 104M. Industry value-added rate (15-40%) is applied, then 10% VAT. No mandatory tax invoice issuance.
Filing deadlines
General: H1 (Jan-Jun) by Jul 25, H2 (Jul-Dec) by Jan 25 next year. Simplified: once a year by Jan 25. Provisional filings due quarterly on the 25th.