Reduced VAT / GST rate

0^[1]

Standard VAT / GST rate

10

High VAT / GST rate

Not applicable

_______________ 

Note: Certain electronic services provided by a foreign corporation to a Korean customer (and not business operators) is subject to 10% VAT in Korea. The Korean VAT law was amended to expand the scope of such electronic services, including “intermediary activity.” These additional services are subject to 10% VAT in Korea as of July 1, 2019.

[1]  Zero rated VAT applies to exports, associated transport services, and certain business support services. VAT exemption applies to finance and insurance services. Services rendered overseas are generally not subject to VAT in Korea. The VAT rate will increase to 15.5% in South Africa effective 1 May 2025.