# South Korea VAT Guide for 2026: Rates, Registration & Filing

Canonical: https://trykintsugi.com/sales-tax-guides/apac/south-korea
Published: July 27, 2026

South Korea's VAT rate is 10% on most goods and services. Learn how registration works, the simplified regime for foreign digital-service providers, and quarterly filing rules.

- **SaaS:** Taxable
- **Digital Goods:** Taxable

## Key Takeaways

South Korea's VAT is a flat 10% on most goods and services, with exports zero-rated. Every business making taxable supplies registers for VAT regardless of turnover, and non-resident providers of electronic services (including software and cloud) register under a simplified foreign-provider regime. Basic foods, medical care, finance and insurance, and education are exempt; SaaS and other electronic services to Korean consumers are taxable at 10%.

## Taxability Snapshot

## Sales Tax Rates

South Korea's Value-Added Tax (VAT) is a flat 10% on most goods and services. Exports are zero-rated, and basic foods, medical, financial, and education services are exempt. The National Tax Service (NTS) administers it, and electronic tax invoices are mandatory for registered suppliers [1].

| Rate | Applies to |
| --- | --- |
| Standard 10% | Most goods and services |
| Zero 0% | Exports; certain services supplied to non-residents |
| Exempt | Basic foods, medical, finance and insurance, education |

For more detail, see our [APAC VAT guides](/sales-tax-guides/apac).

#### Registration & nexus threshold

South Korea uses VAT registration rules, not US-style economic nexus. Every business making taxable supplies in Korea registers for VAT regardless of turnover, and small businesses below the simplified-taxation limit may file under a simplified regime [1]. Non-resident providers of electronic services, including software, cloud, and digital content, to Korean consumers must complete simplified VAT registration through the NTS Hometax portal from the first B2C supply, with no minimum threshold, and charge 10% VAT [1]. B2B supplies to Korean VAT-registered customers are accounted for by the customer, not the foreign supplier. Registration steps are in the How to Register section.

#### Filing frequency & deadlines

Non-resident simplified e-service filers file quarterly, with the return and payment due by the 25th of the month after each quarter — 25 April, 25 July, 25 October, and 25 January. Resident businesses file across the two semi-annual taxable periods, with preliminary quarterly returns in between [1][2].

#### Exemptions

Basic foods, medical and health care, finance and insurance, and education services are exempt, and exports are zero-rated. SaaS and other electronic services supplied to Korean consumers are taxable at 10%, collected through the foreign-provider simplified regime or by the marketplace where one is interposed [1][2].

#### Penalties

Failing to complete simplified registration costs 1% of the value of electronic services supplied before registration. Late payment accrues 0.022% of the unpaid tax per day (about 8.03% a year) — and under- or non-filing draws additional surcharges [2].

#### Sources

- [1] [National Tax Service — VAT on Electronic Services (non-resident simplified registration, 10% VAT)](https://www.nts.go.kr/english/na/ntt/selectNttList.do?mi=11210&bbsId=30699)

- [2] [National Tax Service — Filing returns](https://www.nts.go.kr/english/cm/cntnts/cntntsView.do?mi=40008&cntntsId=238886)

- [3] [National Tax Service — English portal](https://www.nts.go.kr/english/main.do)

Verified July 2026 against National Tax Service guidance.

#### Frequently asked questions

### What is the South Korea VAT rate in 2026?

A single standard rate of 10% on most goods and services, with exports zero-rated and basic foods, medical, finance, and education exempt.

### Is there a VAT registration threshold for foreign digital sellers?

No. Foreign providers of electronic services to Korean consumers register under the simplified regime from their first B2C sale — there is no minimum turnover.

### Is SaaS taxable in South Korea?

Yes. SaaS and other digital services sold to Korean consumers are taxed at the standard 10% VAT rate.

### What must a non-resident digital seller do?

Complete simplified VAT registration with the NTS and file quarterly; if selling through a marketplace, that platform registers and remits instead.

### When are Korean VAT returns due?

Non-resident e-service filers file quarterly, due the 25th of the month after each quarter (25 Apr, 25 Jul, 25 Oct, 25 Jan).

### What is the penalty for late Korean VAT?

Failing to register costs 1% of the electronic-services value supplied beforehand; late payment accrues about 0.022% per day (roughly 8% per year).