Korea: VAT registration required for foreign electronic service providers

Korea: VAT registration, electronic service providers

New provisions require non-resident vendors to register for and charge value added tax (VAT) on sales of electronic services to the end-user consumer in South Korea. The changes are effective 1 July 2015.


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Previously, sales of electronic services were considered as not having been provided in Korea, and thus were not subject to VAT.

With the new rules, non-Korean application (app) developers or open-market operators must register their businesses with the tax authorities and fulfill their tax obligations.

Read a July 2015 report [PDF 574 KB] prepared by the KPMG member firm in South Korea: New VAT Registration for Overseas Electronic Service Providers

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