VAT Calculator (Korea 10%)
Value Added Tax (VAT) is a tax levied on the value added during the supply of goods and services. Korea's standard rate is 10%. This calculator supports both directions: adding VAT to a net (supply) amount, and extracting the net amount and VAT from a tax-inclusive total.
Examples
VAT on a net amount of ₩1,000,000
If the net amount is ₩1,000,000, VAT is 1,000,000 × 10% = ₩100,000, so the total is ₩1,100,000.
Extracting VAT from a total of ₩550,000
If the tax-inclusive total is ₩550,000, the net amount is 550,000 ÷ 1.1 = ₩500,000 and the VAT is ₩50,000.
Freelancer quotes
If a freelancer quotes a ₩3,000,000 project excluding VAT, the final invoice is ₩3,000,000 + ₩300,000 (VAT) = ₩3,300,000.
FAQ
Is the VAT rate always 10%?
Korea's standard VAT rate is 10%. However, a zero rate (0%) applies to exported goods, and some items such as unprocessed food, medical services, and education are VAT-exempt.
What is the difference between the net amount and the total?
The net (supply) amount is the price of the goods or services excluding VAT. The total is the final payment amount, which adds 10% VAT to the net amount.
When do I need reverse VAT calculation?
When you only know a tax-inclusive amount — such as a receipt or card payment total — and need to split it into the net amount and VAT for invoicing or bookkeeping.
Do simplified taxpayers also pay 10% VAT?
Simplified taxpayers in Korea pay VAT at a lower effective rate using industry-specific value-added ratios (15–40%). Those with annual revenue under ₩48 million are exempt from VAT payment.
When is VAT filed in Korea?
Corporations file quarterly (four times a year), individual general taxpayers file twice a year in January and July, and simplified taxpayers file once a year in January.
What is VAT?
Value Added Tax (VAT) is a tax on the value added (margin) created when goods are traded or services are provided. A business calculates the VAT it owes by subtracting input tax (on purchases) from output tax (on sales).
Because VAT is included in retail prices, it is effectively borne by the final consumer. Businesses act as collectors, remitting the VAT paid by consumers to the tax office.
Tax invoices and VAT
In business-to-business transactions in Korea, a tax invoice must be issued that clearly separates the net amount and VAT. Input tax stated on tax invoices can be deducted when filing VAT returns, so accurate VAT calculation matters.
Electronic tax invoices can be issued through the National Tax Service's Hometax system. They are mandatory for corporations and for individual businesses whose supply value in the previous year was ₩80 million or more.
Related Calculators
Percentage Calculator
Find what percent one value is of another, calculate percentage increase or decrease, and get X% of any number. A free percentage calculator for discounts, raises, and ratios.
Korean Age Calculator
Calculate your international age and Korean year age from your date of birth. This free age calculator follows Korea's 2023 age standardization law and also shows your zodiac sign and days until your next birthday.