Simplified VAT Calculator (Korea)
Estimate Korea's simplified-taxation VAT payable from business type and annual supply value at 2026 rates.
Enter business type and annual supply value to get the simplified VAT payable.
Payable = supply value × industry VAT-added rate × 10% − purchase credit (purchases with tax invoice × 0.5%). If the period supply value is under 48M KRW, payment is exempt (filing still required). Based on 2026 industry rates; card-slip issuance credit and inventory input tax are not included. Confirm simplified/general status, area/type exclusions and exact classification with the tax office or an accountant.
🔒 Inputs are calculated in your browser and never sent to a server.
How it's calculated
Payable = supply value × industry VAT-added rate × 10% − purchase credit. Retail at 15% on 50M KRW gives output tax of 750,000 KRW, less the purchase credit.
2026 industry rates
Retail & restaurants 15%, manufacturing & agriculture 20%, lodging 25%, construction/transport/IT/other services 30%, finance/real-estate rental/professional services 40%. Confirm exact classification with the tax office.
Purchase credit and exemption
Simplified taxpayers deduct 0.5% of purchases made with a tax invoice. If the period supply value is under 48M KRW, payment is exempt (you still file).
Private by design
Inputs are calculated in your browser and never sent to a server.
Frequently asked questions
How is simplified VAT calculated?
Supply value × industry rate × 10% − purchase credit (0.5% of purchases with a tax invoice).
What are the industry rates?
15% retail/restaurants, 20% manufacturing/agriculture, 25% lodging, 30% construction/transport/IT/other services, 40% finance/real-estate/professional.
Is there a payment exemption?
Yes — under 48M KRW of period supply value, payment is exempt, though filing is still required.
Does this match my real filing?
It covers the basic formula only; card-slip credit and other items are not included. Confirm with the tax office or an accountant.