South Korea VAT Guide for Nonresident SaaS and E-commerce
A practical guide for US SaaS and e-commerce companies selling into South Korea. Rates, registration thresholds, filing deadlines and e-invoicing status, pulled from the same data that powers our free tools.
Zero. All foreign providers of B2C digital services to Korean consumers must register, regardless of turnover.
Filing frequency
Quarterly
Do I need to register for VAT in South Korea?
South Korea has charged VAT on cross-border digital services since July 2015 through the Simplified VAT registration for nonresidents. There is no threshold: registration is required from the first sale to a Korean consumer. Filings run quarterly through the NTS Hometax portal.
B2C digital services (SaaS, streaming, gaming, advertising): register for Simplified VAT from the first Korean B2C sale. Tax rate is 10% on the supply value.
B2B digital services to a VAT-registered Korean buyer: outside the Simplified VAT scheme. The buyer self-assesses VAT under reverse charge. Capture the buyer's Korean Business Registration Number.
Goods sales: not covered by Simplified VAT. Korean import VAT applies at the border, typically handled by the importer of record.
Tax agent option: Simplified VAT registrants do not need a Korean-resident tax agent, but one may be appointed for ease of communication with the NTS.
How to register
Registration runs through the NTS Hometax portal, which has an English-language interface for the Simplified VAT scheme. Approval is fast (typically a few business days) and there is no fiscal-representative requirement.
Where: via Hometax at hometax.go.kr (English option available). The portal handles registration, returns and payment. Local link: National Tax Service (NTS).
What you'll need: US tax ID (EIN), business legal name, expected Korean B2C turnover, bank account details for refunds, description of digital services.
Typical timeline: 5 to 10 business days from a complete application to NTS approval and Simplified VAT number issuance.
Cost: Registration is free. No fiscal representative required, no bank guarantee. Optional Korean tax-agent fees run KRW 1M to KRW 5M per year if engaged.
Filing and deadlines
Simplified VAT returns are filed quarterly through Hometax. Returns are due by the 25th of the month following each quarter end. There is no OSS overlap.
Local South Korea filing frequency: Quarterly.
Return due: 25 days after period end.
Payment due: Within 25 days of period end.
E-invoicing status in South Korea
Status
Mandatory
Format
e-Tax Invoice XML via NTS (e-Sero / Hometax)
Model
Pre-clearance (near real-time)
Scope
B2G + B2B + B2C
Go-live
All corporations since 2011-01-01; sole proprietors above KRW 800m since 2024-07-01
e-Tax Invoice must be transmitted to NTS within one day of issuance; threshold lowered progressively.
Common mistakes US SaaS makes in South Korea
Waiting for a threshold that does not exist. Korean Simplified VAT applies from the first B2C sale, not after a turnover threshold.
Charging VAT on B2B sales to Korean buyers. B2B reverse charge applies; the buyer self-accounts. Charging in error means refunding and amending later returns.
Missing the 25th-of-month filing deadline. NTS issues automatic late-filing penalties on day 26. Set quarterly reminders for 25 January, 25 April, 25 July, 25 October.
Confusing Simplified VAT with full Korean VAT registration. Simplified VAT is digital-services-only and B2C-only. Full registration is required for goods, B2B with a Korean establishment, or input-tax recovery.
Trusting Stripe Tax to handle Korean VAT. Stripe collects but you remain the supplier of record. Korean Simplified VAT registration is still your obligation.
Not sure if you've crossed the South Korea threshold?
Run a free exposure check across South Korea and the major APAC and EU jurisdictions. Upload a CSV or sync Stripe; we'll show every country where you're already over the line.
Do US SaaS companies need to register for Korean VAT?
Yes, from the first B2C sale to a Korean consumer. There is no threshold for the Simplified VAT scheme. B2B sales to VAT-registered Korean buyers fall outside Simplified VAT and use reverse charge.
What is the Korean VAT registration threshold for nonresident sellers?
Zero. All foreign providers of B2C digital services to Korean consumers must register from their first sale, with no de minimis.
How often do I file VAT returns for South Korea sales?
Simplified VAT returns are filed quarterly through Hometax. The data sources show the local Korean filing frequency as: Quarterly.
Is e-invoicing mandatory in South Korea?
E-invoicing status in South Korea: Mandatory. Format: e-Tax Invoice XML via NTS (e-Sero / Hometax).
Can I use the EU One Stop Shop (OSS) for Korean VAT?
No. South Korea is not part of any EU scheme. Korean VAT is filed under Simplified VAT directly with the NTS through Hometax.