Key terms
- Supply value (공급가액): the price of the goods or service without VAT.
- VAT (부가세): 10% of the supply value (Value-Added Tax Act, Art. 30).
- Total (합계, 공급대가): supply value plus VAT — what a customer pays. Prices shown to consumers in Korea usually include VAT.
How it’s calculated
VAT = supply value × 10% · supply value = total × 100 ÷ 110
Working back from a total can leave a fraction of a won. A total of ₩10,000 splits into ₩9,090 + ₩910 when rounding down, or ₩9,091 + ₩909 when rounding off. Match the method your accounting software or business partner uses.
When this calculator doesn’t apply
- Simplified taxpayers (간이과세자) calculate the tax they owe with industry-specific value-added ratios.
- VAT-exempt goods and services, such as unprocessed food and medical or educational services, carry no VAT (Art. 26).
- Zero-rated supplies such as exports have a 0% rate.
FAQ
What is the supply value of ₩1,100,000?
₩1,000,000, with ₩100,000 VAT. Divide the total by 1.1 to get the supply value.
Should a tax invoice round down or round off?
In practice it varies by company and accounting software. Using the same method as your business partner avoids mismatches; ask a tax professional if unsure.
Does a card payment include VAT?
For taxable goods sold by a general taxpayer, yes — the amount paid already includes VAT.
For reference only. Actual amounts and decisions depend on your contract, your workplace and how the authorities apply the rules.