VAT Calculator
Supply value and VAT automatically.
Statutory formulaBased on 2026 rulesSources: Value-Added Tax Act · National Tax Service
Total amount
1,100,000원
Based on a 10% VAT rate.
What is VAT?
Value Added Tax is an indirect tax on the value added during the supply of goods and services. The general 2026 rate is 10%.
Conversion formulas
- Supply value → VAT: VAT = supply value × 10%
- Total → supply value: supply value = total ÷ 1.1
Tax invoice notes
Tax invoices list supply value and VAT separately. Simplified taxpayers and exemptions may differ.
Everyday examples
- VAT-exclusive quote: Add 10% to a supply value of 100,000 KRW → VAT 10,000 KRW, total 110,000 KRW. Show it as "100,000 + VAT 10,000".
- Splitting a total: A card receipt total of 55,000 KRW ÷ 1.1 = supply value 50,000 KRW, VAT 5,000 KRW.
- Issuing a tax invoice: For a 3,000,000 KRW supply value, list VAT of 300,000 KRW separately for a total of 3,300,000 KRW.
- Simplified taxpayers: Simplified taxpayers apply an industry value-added ratio, so the payable tax differs from the flat 10% here. Check Hometax for exact figures.
Filing deadlines and input tax credits
The rate is a flat 10%, so the arithmetic rarely goes wrong. Losses come from missed deadlines and from paying with documentation that does not support an input tax credit.
Four filings a year
Corporations file four times: preliminary returns due 25 April and 25 October, and final returns due 25 July and 25 January.
Individual general taxpayers file only the two final returns, but receive preliminary assessments of half the previous period's tax — so payment still happens four times. A preliminary return can reduce that assessment when business has slowed.
Simplified taxpayers file once a year by 25 January. Crossing the turnover threshold moves them to general taxation the following year, with a separate adjustment for input tax on stock.
Input tax that cannot be credited
- Purchases without a tax invoice. Simple receipts do not qualify; card slips and cash receipts issued for business expenditure do.
- Entertainment expenses, regardless of the payment method.
- Non-business passenger vehicles — purchase, fuel and repairs alike, though small cars and vehicles seating nine or more qualify.
- Purchases attributable to exempt supplies, apportioned by turnover where taxable and exempt activity are mixed.
Invoice timing and penalties
Tax invoices should be issued when the supply is made, and no later than the 10th of the following month. Missing that draws late-issue penalties for the supplier and late-receipt penalties for the buyer.
Corporations and larger individual businesses must issue electronically; paper issuance counts as non-issuance. Transmission to the tax authority is due the next day, with its own penalty for delay.
Misstating the supply value is treated most seriously — invoices without a real transaction, or inflated amounts, attract substantial penalties and can be prosecuted.
Legal basis
- Taxable periods and filing — VAT Act arts. 5, 48, 49
- Non-creditable input tax — VAT Act art. 39
- Invoice timing — VAT Act art. 34
- Penalties — VAT Act art. 60