South Korea VAT / Sales Tax
Detailed vat / sales tax rates and rules for South Korea in 2026.
South Korea's VAT is levied at a flat rate of 10% on most goods and services. Certain essential goods and services are exempt from VAT, including unprocessed foodstuffs, medical and healthcare services, educational services, financial and insurance services, and public housing. There are no reduced VAT rates in Korea; supplies are either taxed at 10%, zero-rated (primarily exports), or exempt.
Standard Rate
10%
Registration Threshold
All businesses supplying taxable goods or services must register for VAT regardless of turnover. Simplified taxation applies for small businesses with annual revenue below KRW 80 million.
Reduced Rates
How South Korea VAT / Sales Tax compares
South Korea’s standard VAT / sales tax rate of 10% is the 140th highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Asia’s regional average of 9.6%.
