Simplified Taxpayer VAT Calculator
Enter your industry and supply value (revenue), and the payable tax under the simplified taxpayer rules will be calculated for you.
Fill in your details on the left and press Calculate to see your result here.
How is a simplified taxpayer's payable tax calculated?
Industry value-added rate table
| Industry | Value-added rate |
|---|---|
| Retail, restaurants, recycled materials collection/sale (15%) | 15% |
| Manufacturing, agriculture/forestry/fishing, parcel delivery (20%) | 20% |
| Lodging (25%) | 25% |
| Construction, transportation/warehousing (excl. parcel delivery), IT/communications (30%) | 30% |
| Finance/insurance-related services, professional/scientific/technical services (excl. personal services), real estate, other services (40%) | 40% |
The industry-specific value-added rates follow Appendix 4 of the Enforcement Decree of Korea's Value-Added Tax Act, and payment is exempt when the supply value is under 48 million KRW, per Article 69 of the Value-Added Tax Act.
Simplified Taxpayer VAT Calculator FAQ
How is a simplified taxpayer different from a general taxpayer?
Simplified taxpayer status applies to individual business owners whose total supply value in the prior year was under 80 million KRW. Instead of taxing the full revenue, it multiplies revenue by an industry-specific value-added rate, lowering the tax burden. General taxpayers fully deduct input tax from output tax — a structurally different calculation.
What does "payment exempt" mean?
If your total supply value for the tax period is under 48 million KRW, you don't have to pay VAT for that period (Article 69 of the Value-Added Tax Act). This exempts payment only — you may still need to file a return by the deadline, so don't skip that.
Can I lower my tax further by receiving purchase tax invoices?
Yes. Receiving purchase tax invoices lets you claim a tax credit on part of your purchases (the purchase tax invoice receipt credit). This calculator only computes the base tax using the industry value-added rate, so your actual payable tax may be lower once that credit is applied.
What if I run more than one type of business?
In principle, you should split your supply value by industry, apply each industry's rate separately, and add the results together. This calculator works with a single industry at a time, so if you have multiple business lines, calculate each separately and sum them.
Do simplified taxpayers need to issue tax invoices?
Simplified taxpayers with a prior-year supply value between 48 million and 80 million KRW must issue tax invoices. Below 48 million KRW, issuing a simple receipt is sufficient.
This calculator computes only the base payable tax using the industry value-added rate, and doesn't reflect additional credits such as the purchase tax invoice receipt credit or the e-filing tax credit. For the exact amount to file and pay, please consult a tax accountant or Hometax.