How VAT is calculated
Korea's VAT rate is 10%.
- Supply value → total: VAT = supply value × 10%, total = supply value × 1.1
- Total → supply value: supply value = total ÷ 1.1, VAT = total − supply value
For example, a card receipt total of ₩11,000 means a supply value of ₩10,000 and VAT of ₩1,000.
Rounding won
Working back from a total can leave fractions under ₩1. Tax invoices usually drop VAT fractions under ₩1 and adjust the supply value to match the total.
Simplified taxpayers
Simplified taxpayers with annual sales under ₩104M apply industry value-added ratios (15–40%), so the actual tax paid is much lower. This calculator uses the standard 10%.
FAQ
What does "VAT excluded" on a quote mean?
The amount shown is the supply value; the actual payment is that amount plus 10%.