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What is the VAT rate in Korea? 10 percent, what is exempt, the individual consumption tax and a calculator for prices that include VAT
Numbers checked against the official source on 2026-10-19
The Value-Added Tax rate in Korea is 10 percent: Article 30 of the Value-Added Tax Act says, in one sentence, that the rate of VAT is 10 percent. A business that supplies goods or services must collect that VAT from the buyer, and the taxable amount (the "supply value") does not include the VAT itself. Some supplies are exempt, including unprocessed food, tap water, books, newspapers, land and housing rental. A separate individual consumption tax applies to specific goods, entrances and venues.
Law text: Value-Added Tax Act (부가가치세법) as shown on the National Law Information Center: "[시행 2026. 1. 2.] [법률 제21065호, 2025. 10. 1., 타법개정]". Individual Consumption Tax Act (개별소비세법): "[시행 2026. 4. 24.] [법률 제21216호, 2025. 12. 23., 타법개정]". Read on 2026-10-19.
What is the VAT rate in Korea, and who collects it?
- Rate. Article 30: 10 percent.
- Collection from the buyer. Article 31: a business supplying goods or services must collect VAT from the buyer, calculated by applying the Article 30 rate to the supply value of Article 29(1).
- VAT is not part of the supply value. Article 29(3) defines the supply value as everything of monetary value received from the buyer "regardless of name" (price, fee, commission), but "not including" VAT.
- Tax invoice. Article 32(1): a business making a supply (except exempt supplies) must issue a tax invoice showing the supply value and the VAT amount, and the buyer's registration number. Corporations and designated individual businesses must issue them electronically (Article 32(2)).
Price including VAT calculator
If a shelf price includes 10 percent VAT, the price before VAT is the shelf price divided by 1.1 and the VAT inside it is the difference. This is plain arithmetic from the 10 percent rate and the rule that the supply value excludes VAT; the Articles do not state a rounding rule, so figures are rounded to the nearest won for display only.
Not covered: exempt goods and services, the individual consumption tax below, and rounding. Check the receipt: it is the seller's figure that counts.
What is exempt from VAT in Korea?
Article 26(1) lists supplies for which VAT is waived. Several details are left to the Presidential Decree, which we did not read, so each line below is the statute's wording only:
| Exempt supply (Article 26(1)) | Notes from the text |
|---|---|
| Unprocessed food (including edible farm, livestock, fishery and forestry products) | Plus some domestically produced non-food farm products set by decree |
| Tap water; briquettes and anthracite | |
| Feminine hygiene products | |
| Medical and health services, blood | Services set by decree |
| Educational services | Services set by decree |
| Passenger transport | Excluded (not exempt), as set by decree: transport by aircraft, express bus, charter bus, taxi, special-purpose vehicle, special ship or high-speed rail; and ropeways, cruise boats and other sightseeing or leisure transport |
| Books, newspapers, magazines, official gazettes, news agency services and broadcasts | As set by decree; advertising is excluded |
| Postage stamps (not collector stamps), revenue stamps, lottery tickets, public phones | |
| Tobacco | Only below a price set by decree, or special-purpose tobacco |
| Financial and insurance services; housing rental and its land; land | As set by decree for services and housing |
| Admission to libraries, science museums, museums, art galleries, zoos, botanical gardens | Plus other places set by decree |
| Supplies by the state and local governments; free supplies to them | As set by decree |
The statute also says that supplies that normally accompany an exempt supply are treated as part of it (Article 26(2)). For the tourist refund on goods bought in a shop, see Korea tax refund for tourists.
Individual consumption tax: examples from the statute
Separate from VAT, Article 1 of the Individual Consumption Tax Act taxes specific goods, entrances to certain places, entertainment food and drink, and certain business activities. The rates below are the statute's own. Paragraph 7 lets a Presidential Decree adjust them within 30 percent when the economy needs it, so the rate actually applied (especially fuel) can differ from this table; we did not read the decree.
| Item | Statute rate |
|---|---|
| Jewels, precious-metal goods, high-end watches, carpets and bags (above a decree-set base price) | 20% of the price above the base price |
| High-end furs and furniture (above the base price) | 20% of the price above the base price |
| Passenger cars over 2,000 cc, camping cars; passenger cars of 2,000 cc or less and motorcycles; electric passenger cars (some small types excluded) | 5% of the price |
| Gasoline and similar | KRW 475 per litre |
| Diesel and similar | KRW 340 per litre |
| Natural gas (other than for power generation, as set by ministerial order) | KRW 60 per kilogram (KRW 12 for power generation) |
| Entrance to a golf course | KRW 12,000 per person per entry |
| Entrance to a casino | KRW 50,000 per person per entry; foreigners KRW 2,000 |
| Entertainment bars, foreigner-only entertainment restaurants and similar | 10% of the entertainment food and drink charge |
Questions about your own case
This page is a plain-English reading of the statutes, not tax advice. The National Tax Service runs a helpline for foreigners: "82-1588-0560", open Monday to Friday 9:00am to 6:00pm (except 11:30am-1:00pm), according to its English Help Desk page. Confirm with the National Tax Service before relying on a figure here.
Checked 2026-10-19.
Official sources
- National Law Information Center — Value-Added Tax Act, Article 30 (rate) — VAT rate 10 percent; in force 2026-01-02 (checked 2026-10-19)
- National Law Information Center — Value-Added Tax Act, Article 26 (exempt supplies) — list of exempt goods and services (checked 2026-10-19)
- National Law Information Center — Value-Added Tax Act, Article 29 (tax base) — supply value does not include VAT (checked 2026-10-19)
- National Law Information Center — Value-Added Tax Act, Article 31 (collection) — the business collects VAT from the buyer (checked 2026-10-19)
- National Law Information Center — Value-Added Tax Act, Article 32 (tax invoices) — tax invoice contents and electronic issue (checked 2026-10-19)
- National Law Information Center — Individual Consumption Tax Act, Article 1 — taxable goods, places, rates; in force 2026-04-24 (checked 2026-10-19)
- National Tax Service (English) — Help Desk — helpline for foreigners and opening hours; no revision date printed (read on 2026-10-19) (checked 2026-10-19)
Prices change. If an official page shows a different number from this page, the official page wins — and please tell us so we can fix it.