Korea VAT Calculator (10%)

How it works

• Tourists can get VAT refunds on eligible purchases at tax-free shops.

FAQ

What is the VAT rate in Korea?

10%.

Worked example

Adding VAT: a supply value of ₩100,000 carries 10% VAT of ₩10,000, so the total is ₩110,000. A ₩1,000,000 invoice becomes ₩1,100,000.

Removing VAT: if a Korean receipt shows ₩55,000 including VAT, the supply value is ₩55,000 ÷ 1.1 = ₩50,000 and the VAT is ₩5,000 — one eleventh of the total, not 10% of it (₩5,500 would be wrong).

Korean receipts usually show 공급가액 (supply value), 부가세 (VAT) and 합계 (total). Prices in Korean shops are normally quoted VAT-inclusive, while business-to-business quotes often say "VAT 별도" (VAT excluded).

Reading a quote: if a Korean quote says "₩3,000,000 VAT 별도", you will actually pay ₩3,300,000. If it says "VAT 포함" (VAT included), the supply value is ₩2,727,273 and the VAT is ₩272,727. Tax invoices (세금계산서) round down amounts below one won, so totals can differ by ₩1. Always confirm which one applies before signing a contract or paying a deposit.

Common mistakes

• Taking 10% off a VAT-inclusive price overstates the VAT. Divide the total by 11 instead.
• Simplified taxpayers (간이과세자, small businesses) pay VAT at an effective 1.5–4% of sales, so their receipts may not show a separate 10% line.
• Unprocessed food and qualifying medical and education services are VAT-exempt in Korea; some services, such as cosmetic procedures, are taxed.
• Tourists can reclaim part of the VAT on goods bought at Tax Free shops — see the tax refund calculator.
• Invoices from VAT-exempt businesses (계산서) contain no VAT, so do not divide their totals by 1.1. Only a tax invoice (세금계산서) or a card or cash receipt showing VAT lets a business claim input VAT back.

Explanation checked on 2026-10-30 · Spotted an outdated value? Tell us