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South Korea foreign digital services transaction reporting Jul 2022

South Korea is to implement on-demand transaction reporting from 1 July 2022 for non-resident suppliers of digital or electronic services. Korea first implemented VAT on digital services in July 2015.

Non-residents registered for digital services are obliged to maintain transactional-level details for at least five years. The Ministry of Strategy and Finance has now announced in its 2020 tax proposal measures that providers must be prepared to send this on-demand. They will be given 60 days’ notice to produce the information following any request from the Commissioner of National Tax.

This will also include online marketplaces and similar electronic platforms that provide third-party sellers’ digital services. They are the deemed supplier for VAT purpose of the sale under South Korea’s rules. Our VAT Calculator tax engine can provide instant South Korean VAT or any other global indirect tax calculations for your e-invoicing or real-time reporting obligations.

There is a simplified VAT registration and reporting process for non-resident providers. The current VAT rate in South Korea is 10%.

Follow VAT Calc’s global VAT and GST on digital services tracker for live updates on worldwide reforms.

Asia Pacific VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Australia 10% Jul 2017 AUD $75,000
Azerbaijan 12% Jan 2017
Armenia 20% Jan 2022 AMD 115million
Bangladesh 5% - 15% Jul 2019 B2B and B2C
Bhutan 7% Jul 2021 Nu 5million
Cambodia 10% Mar 2022 KHR 250m
China 6%-13% N/a Nil Withholding VAT; B2B and B2C
Fiji 9% TBC FJD 300,000
India 18% Jul 2017 -
Indonesia 11% Aug 2020 IDR600m or 12k customers
Japan 10% Oct 2015 JPY 10 million
Kazakhstan 12% Jan 2022 Nil
Kyrgyzstan 12% Jan 2022 Nil
Laos 7% Feb 2022 LAK 400m
Malaysia 6% Jan 2020 RM500,000
Nepal 13% Jul 2022 Rupees 2m Also 2% DST
New Zealand 15% Oct 2016 NZD 60,000
Pakistan 2% Sep 2021 Nil Marketplace Withholding VAT
Philippines 12% TBC P 3million
Singapore 7% Jan 2020 S$ 100,000
South Korea 10% Jul 2015 Nil
Taiwan 5% May 2017 NTD 480,000
Tajikistan 18% Jan 2021
Thailand 7% Sep 2021 1.8m Baht
Uzbekistan 15% Jan 2020 Nil
Vietnam 10% Dec 2020

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