South Korea

South Korea extends VAT to foreign cloud computing

August 5th, 2018

The Republic of Korea (South Korea) has extended the scope of VAT to non-resident B2C providers of cloud computer services. This new liability will come into force on 1 July 2019. South Korea made non-resident providers of streaming media, video, music, games etc. liable to VAT in July 2015. This mirrored changes in Japan and …

South Korea

South Korean VAT on digital services

November 9th, 2017

Non-resident providers of electronic services have been required to charge VAT on their sales to Korean consumers since 1 July 2015. Definition of South Korean e-services The South Korean VAT net includes income on the following services provided electronically: Games, music, video files Documents and software Upgrade of above services Cloud computer services (from July …

South Korea

South Korea e-service foreign intermediaries VAT liable

June 25th, 2016

The South Korean tax office has ruled that non-resident online market place intermediaries are liable to collect VAT on e-services provided to consumers. This obligation is triggered where the intermediary receives the consumer payment on behalf of the service provider. South Korea introduced the obligation for non-resident digital services providers to register and charge 10% …

South Korea

South Korea import VAT deferment

January 25th, 2016

South Korea is to become the latest country to offer an import VAT deferment scheme to help mitigate cash flow management for importers. The proposal would enable the importer of record to delay payment of both import VAT and duties until the next VAT return. To qualify for the new scheme, which launches in July …

South Korea

Korean VAT on financial services proposal

August 20th, 2014

Korea is proposing to introduce VAT on financial services at 10% from July 2015. This will include banking, insurance, credit and factoring-related services. Few countries around the rest of the world attempt to levy VAT on financial services because of the practical difficulties of determining the value added through the chain of supply. EU Financial …

South Korea

Korea VAT rules update

September 11th, 2013

The Korean Finance Ministry is bringing forward a range of Value Added Tax and Customs for implementation in 2014.  Aside from improving the administration of tax, the Korean VAT changes will also help expand the indirect tax base. Importers will be able to seek a restatement of the customs duties valuation of goods if it …

South Korea

South Korea VAT on intra-group supplies clarified

May 7th, 2013

The rules on delegation agreements and the South Korean VAT treatment between foreign companies and their local operations has been clarified recently. The clarification was contained within a recent tax ruling involving the foreign telecommunications supplier, and its Korean subsidiary.  The subsidiary was offering supplies to local companies on behalf of its group parent. The …