Value Added Tax (VAT) is a tax imposed on the added value generated during the transaction of goods or services. In South Korea, a 10% VAT rate applies to most goods and services, and businesses must separately list the supply amount and VAT when issuing tax invoices.
This VAT calculator automatically computes the remaining amounts when you enter any one of the supply amount, total amount, or VAT. You can also change the tax rate to accommodate various situations such as exports, tax-exempt items, and simplified taxation.
Key Features
3 Calculation Modes
Enter any amount - supply amount, total, or VAT - and the remaining values are automatically calculated.
Customizable Tax Rate
Beyond the standard Korean 10%, you can freely change the rate to handle tax-exempt, zero-rated, or international tax rates.
Comma-Formatted Amounts
Large amounts are displayed with thousand separators (1,000,000) for readability, and each result can be copied with a single click.
Calculation History
The last 5 calculations are automatically saved so you can quickly review previous results.
How to Use
Select Calculation Mode — Choose the type of amount you want to enter from the tabs at the top: Supply Amount, Total Amount, or VAT.
Enter Amount — Enter the amount for your selected mode. Commas are automatically added as you type.
Check/Change Tax Rate — The default rate is set to 10%. Change it as needed for your situation.
View Results & Copy — Check the supply amount, VAT, and total in the results, and use the copy button to copy any amount to your clipboard.
Use Cases
Issuing Tax Invoices
Accurately separate supply amount and VAT from transaction amounts when issuing tax invoices.
Creating Quotations
Quickly calculate VAT-inclusive or VAT-exclusive amounts for customer quotations.
VAT Filing Preparation
Quickly reverse-calculate sales and purchase tax amounts for quarterly VAT filing preparation.
Consumer Price Setting
Set VAT-inclusive consumer prices or separate VAT from consumer prices to calculate cost prices.
Frequently Asked Questions
What is the VAT rate in South Korea?
The standard VAT rate in South Korea is 10%. This applies to most goods and services. However, some items such as unprocessed food, medical and educational services are exempt from VAT.
What is the difference between supply amount and total amount?
The supply amount is the net transaction amount excluding VAT, while the total amount is the supply amount plus VAT. For example, if the supply amount is 1,000,000 won, adding 100,000 won VAT gives a total of 1,100,000 won.
How do I reverse-calculate VAT from the total amount?
To reverse-calculate VAT from the total (VAT-inclusive) amount: Total / 1.1 = Supply Amount, Total - Supply Amount = VAT. Use the 'Total Amount → VAT' mode in this calculator for automatic calculation.
Is the VAT rate different for simplified taxpayers?
Simplified taxpayers have value-added rates of 1.5% to 4% depending on the business type. You can change the tax rate in this calculator to compute VAT for simplified taxpayers.
When is VAT filing due?
General taxpayers file final returns in January (for Jul-Dec) and July (for Jan-Jun), with preliminary returns in April and October. Simplified taxpayers file once a year in January.
Privacy Notice
This VAT calculator processes all calculations in your browser. Entered amounts and calculation results are never sent to any server. Calculation history is stored only in your browser's localStorage, so you can use it safely without concerns about financial data being exposed.
Understanding VAT in Korea: From Calculation Structure to Taxpayer Types
Value-added tax (VAT) is an indirect tax that adds 10% to the value created at each stage a good or service is traded. The end consumer ultimately bears it, but the party that actually collects, files, and remits the tax is the business. So for a business owner it's not simply 'paying 10% of revenue' — you have to understand precisely that you only remit the difference between the VAT you collected (output tax) and the VAT you paid (input tax), or you'll lose money.
The Three-Part Structure and Reverse Calculation
Every taxable transaction breaks into three parts: the supply value (the pure transaction amount before tax), the VAT (10% of the supply value), and the total amount (supply value plus VAT). When you know the supply value — as when writing a quote — VAT is ×0.1 and the total is ×1.1. The tricky case is when only the total is given, such as a card receipt or 'KRW 110,000 VAT included.' Then you need to work backward.
The reverse formula is simple. Since the total is 1.1 times the supply value, supply value = total ÷ 1.1 and VAT = total ÷ 11. The '÷ 11' is the key, because VAT makes up exactly 1/11 (about 9.09%) of the total. Many people mistakenly take '10% of the total' as the VAT, which is wrong.
Worked Example: Reversing a KRW 110,000 Total
Step 1 — Confirm the total: KRW 110,000 (VAT included)
Check — 100,000 + 10,000 = 110,000 ✓ (using 10% of the total, KRW 11,000, would be off by KRW 1,000)
Item
Formula
Amount
Total (with VAT)
given value
KRW 110,000
Supply value
110,000 ÷ 1.1
KRW 100,000
VAT
110,000 ÷ 11
KRW 10,000
General vs Simplified Taxpayer (2026 Basis)
A sole proprietor's tax type depends on annual revenue. A simplified taxpayer is a small business whose prior-year total turnover is under KRW 104 million (the threshold is KRW 48 million for real-estate leasing and taxable entertainment venues). Simplified taxpayers compute tax at a lower rate by applying an industry-specific value-added ratio (15–40%), and those with turnover under KRW 48 million are exempt from remitting VAT at all. However, input-tax deduction/refund is restricted and tax-invoice issuance is limited, so if you have heavy purchases or clients who demand tax invoices, this status can actually work against you.
General taxpayer — Output tax (sales × 10%) − input tax = tax payable. Full input-tax deduction/refund, obligated to issue tax invoices.
Simplified taxpayer — Computed as sales × industry value-added ratio × 10%, with only partial input-tax deduction. Exempt from remittance if annual turnover is under KRW 48 million.
Type switching — If revenue exceeds the threshold, the status automatically converts as of July 1 of the following year.
Zero-Rate vs Exemption — 0% Is Not the Same as 'Not Subject'
They look alike in that no tax is charged, but they are entirely different. Zero-rating is a 'taxable' transaction at a 0% rate (most notably exports): output tax is zero, but you get a full deduction/refund of input tax — the most favorable case for a business. Exemption, by contrast, removes the item from the VAT system entirely (basic necessities, education, medical care, books, etc.): you charge no VAT on sales, but you cannot deduct input tax either. An exporter who mistakenly files as exempt forfeits the input tax they could have refunded.
Filing Schedule and Common Mistakes
Corporations file four times a year; individual general taxpayers usually file twice (final returns). The first-period final return is due by July 25, and the second-period final return by January 25 of the following year. Simplified taxpayers file once a year, on January 25. Common mistakes include: (1) wrongly deducting VAT as 10% of the total; (2) trying to claim input tax without proper evidence (tax invoice, cash receipt, business card); and (3) confusing exemption with zero-rating. Input-tax deduction is only recognized with qualifying documentary evidence.
📅 Last updated: 2026-06-16🧮 Calculation basis: The formulas, rates and tax rules used here are documented with sources in our methodology page.🏷 Operated by: Calc Tani · About · Contact
⚠️ Disclaimer — Results are reference estimates based on your inputs and published standards, and carry no legal or tax authority. Rates and rules change frequently — always verify the actual amount with the relevant authority, your financial institution, or a professional. Your inputs are never sent to or stored on a server; all calculation happens in your browser.