CalcHub
Free Salary & Tax CalculatorAs of 2024
📝 Enter amount
Supply price (excluding VAT)
원
VAT rate
💡 Supply priceThe amount excluding VAT, Price including VATis the actual amount paid by the consumer.
📊 Calculation result
🏷️
After entering the amount
Calculate VATPlease press .
Value Added Tax (VAT)
—
—
Supply price (excluding VAT)—
Value Added Tax (VAT)—
Total amount including VAT—
Applicable tax rate—
advertisement
What is Value Added Tax (VAT)?
Value Added Tax (VAT) is a tax levied on the value added generated at each stage of a transaction for goods and services. In principle, the VAT rate in Korea is 101 TP3 T.
VAT calculation formula
Supply Price → Price Including VAT:
VAT = Supply Price × 10%
Included Price = Supply Price × 1.1
Price including VAT → Supply price (reverse calculation):
Supply Price = Included Price ÷ 1.1
VAT = Included Price × 10 ÷ 110
VAT = Supply Price × 10%
Included Price = Supply Price × 1.1
Price including VAT → Supply price (reverse calculation):
Supply Price = Included Price ÷ 1.1
VAT = Included Price × 10 ÷ 110
Simplified taxpayers vs. General taxpayers
- General taxpayer: Annual sales of 80 million KRW or more, VAT payment of 10%
- Simplified taxpayer: Annual sales less than 80 million KRW, industry-specific value-added rate × 101 TP 3 T (low tax burden)
- Tax-exempt business operator: No VAT imposed (medical, education, finance, etc.)
Frequently Asked Questions
How is the VAT of 10% calculated?
The 10% of the supply price is the VAT. Example: Supply price 1,000,000 KRW → VAT 100,000 KRW → Total 1,100,000 KRW. Calculate backwards from the price including VAT: 1,100,000 KRW ÷ 1.1 = 1,000,000 KRW (supply price), VAT = 100,000 KRW.
What is the relationship between a tax invoice and VAT?
General taxpayers must issue tax invoices that separately list the supply price and VAT. If you receive a tax invoice at the time of purchase, you can receive a VAT refund through input tax deduction.
What is the difference between tax exemption and zero-rate tax?
For tax-exempt items (medical, education, etc.), there is no value-added tax itself, so tax invoices are not issued. For zero-rated items (exports, etc.), although the tax rate is 0%, there is an obligation to pay value-added tax, so tax invoices must be issued and input tax can be refunded.