How do I split a gross amount into supply value and VAT?
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Understanding VAT in Korea: From Calculation Structure to Taxpayer Types
Value-added tax (VAT) is an indirect tax on value added through supplies of goods and services. Korea's standard rate for ordinary taxable transactions is 10%, and the business collects, files, and remits the tax. A general taxpayer ordinarily subtracts input VAT only when the purchase relates to taxable business, has qualifying evidence, and is not statutorily blocked; filing liability is not simply 10% of sales or every amount labeled input VAT.
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.
For a simple transaction at the standard 10% rate, the total is 1.1 times the supply value, so supply value = total ÷ 1.1 and VAT = total ÷ 11 before whole-won handling. If the split is not exact, this calculator floors the supply value and assigns the remainder to VAT so the entered total is preserved. Tax-invoice rounding and exempt, zero-rated, or simplified-tax filing rules require separate review.
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 VAT status depends not only on prior-year turnover but also on industry or location exclusions and any election for general taxation. Simplified status is generally considered below KRW 104 million of prior-year gross supplies; a KRW 48 million threshold applies to real-estate leasing and taxable entertainment venues. Simplified taxpayers apply the industry value-added ratio (15–40%) and 10% rate before credits, and those below KRW 48 million are generally exempt from remitting VAT. Input credits, refunds, and invoice issuance are restricted, so confirm the registered status that actually applies.
General taxpayer — Output VAT is reduced by input VAT only when the purchase relates to the taxable business, has qualifying evidence, and is not statutorily blocked. A refund may arise when eligible input VAT exceeds output VAT; tax invoices must be issued where required.
Simplified taxpayer — Uses gross supplies × industry value-added ratio × 10% as a starting point before eligible credits. Remittance exemption below KRW 48 million remains subject to statutory conditions and exclusions.
Type switching — Prior-year gross supplies, industry/location rules, exclusions, and elections can change status, generally from July 1. Check the NTS notice and the business's registered status.
Zero-Rate vs Exemption — 0% Is Not the Same as 'Not Subject'
They may both show no output VAT, but they are different. Zero-rating applies a 0% rate to a taxable transaction that meets statutory conditions, such as qualifying exports. Input VAT can be credited or refunded only when it relates to that taxable business, has qualifying evidence, and is not blocked. Exemption removes a transaction from VAT; input VAT related to the exempt business is generally not creditable. Confirm the transaction-specific conditions and documentation.
Filing Schedule and Common Mistakes
Corporations generally file quarterly, while individual general taxpayers usually file final returns by half-year. Their ordinary statutory deadlines are July 25 for the first period and January 25 of the following year for the second; simplified taxpayers generally file by the following January 25. Holidays, filing status, and extensions can change the actual date, so check the NTS notice for that tax period. Common mistakes include: (1) treating VAT as 10% of a VAT-inclusive total; (2) claiming input tax without checking business connection, qualifying evidence, and statutory exclusions; and (3) confusing exemption with zero-rating.
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 tool separates supply amount, VAT, and total for standard taxable transactions. You may change the rate for zero-rated supplies or simple comparisons, but exempt transactions and a simplified taxpayer's filing liability use different rules and must not be calculated with this result alone.
Key Features
3 Calculation Modes
Enter any amount - supply amount, total, or VAT - and the remaining values are automatically calculated.
Customizable Tax Rate
Beyond Korea's standard 10%, you can enter a zero or overseas rate for transaction splitting or simple comparisons. Exempt supplies and simplified-tax filing liabilities are outside this formula.
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?
A simplified taxpayer's filing liability applies the 10% VAT rate after an industry-specific value-added ratio (15–40%), then reflects eligible input-related credits and any remittance exemption. That is not the same as splitting a transaction at 1.5–4%, so do not use this calculator's custom rate as a simplified-tax filing result.
When is VAT filing due?
Individual general taxpayers usually file final returns in January (for Jul–Dec) and July (for Jan–Jun). They are generally issued preliminary bills in April and October, although the business type and circumstances can instead require a preliminary return. Corporations generally file quarterly, while simplified taxpayers usually file once the following January. Confirm the exact deadline and status in the NTS notice for that tax period.
Privacy Notice
This VAT calculator uses entered amounts only for calculations in your browser and does not send them to the server. Calculation history is stored in this browser's localStorage and can be removed with the clear-history control or by deleting site data.
📅 Last updated: 2026-09-20✅ Primary sources checked: 2026-09-20🧮 Calculation basis: The formulas, rates and tax rules used here are documented with sources in our methodology page.🏷 Operated by: Calc Tani · About · Contact
Scope — Splits supply value, VAT, and total for ordinary taxable transactions in either direction.
Exclusions and limits — Exempt/zero-rated filing treatment, simplified-taxpayer liability, input credits, and penalties are not calculated.
⚠️ 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.
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