VAT Calculator

Easily calculate supply price, VAT amount, and total amount. Supports both forward and reverse calculations based on Korea's fixed VAT rate of 10%.

How to Use

Select Calculation Mode

Choose one of three modes based on the value you already know. Select the first mode if you know the supply price, the second if you know the total amount, and the third if you only know the VAT amount.

Enter the Amount

Enter the amount corresponding to the selected mode. Only numbers are required; commas are handled automatically. Decimal amounts are also accepted.

Click Calculate

Click the 'Calculate' button to see instant results. Supply price, VAT, and total amount are each calculated and displayed in Korean won format with commas.

Review Results

Check the supply price, VAT, and total amount in the result section. Each item is clearly separated, making it easy to use directly for tax invoice preparation or expense processing.

Reset

Click 'Reset' to clear all inputs and results before starting a new calculation.

Real World Examples

Example 1: Freelance Service Invoice

A freelance designer providing services worth 1,000,000 KRW: Enter supply price 1,000,000 → VAT of 100,000 is calculated automatically, and the final billing amount is 1,100,000 KRW. This can be used directly when issuing a tax invoice.

Example 2: Reverse VAT from Receipt Total

If you're curious about the VAT on an 11,000 KRW purchase: Enter total amount 11,000 → supply price 10,000 and VAT 1,000 are calculated automatically. Supply price = total ÷ 1.1, rounded to the nearest integer.

Example 3: Reverse from VAT Amount

When you receive a tax invoice showing only a VAT amount of 50,000 KRW: Enter VAT 50,000 → supply price 500,000 and total 550,000 are calculated. Since VAT rate is 10%, supply price = VAT × 10, total = VAT × 11.

Helpful Tips

  • Korea's VAT rate is fixed at 10% under current tax law.
  • Simplified taxpayers (annual revenue under 80 million KRW) may have different VAT rates.
  • Zero-rate VAT items (exports, etc.) are not applicable to this calculator.
  • When reverse-calculating supply price from total, decimals are rounded to the nearest integer.
  • VAT-exempt items (basic necessities, medical, education, etc.) are not subject to VAT.
  • When issuing a tax invoice, supply price and VAT must be listed separately — this calculator makes that easy.
  • Total amounts on credit card receipts often include VAT, so use the reverse calculation feature.

Frequently Asked Questions

Q. What is Value Added Tax (VAT)?

A. Value Added Tax (VAT) is an indirect tax levied on the value added at each stage of a product or service transaction. In Korea, it was introduced in 1977 and is currently set at a flat rate of 10%. While the final consumer bears the tax, businesses collect and remit it to the government. Suppliers issue tax invoices, and VAT is reported and paid (or refunded) twice a year.

Q. What is the difference between supply price and total amount?

A. The supply price is the net price of goods or services before tax (pre-tax amount), while the total amount is the actual payment including 10% VAT (post-tax amount). For example, if the supply price is 100,000 KRW, the VAT is 10,000 KRW, and the total amount is 110,000 KRW. Tax invoices must clearly separate the supply price and VAT.

Q. Can simplified taxpayers use this calculator?

A. This calculator applies a 10% VAT rate for general taxpayers. Simplified taxpayers have different value-added ratios (15–40%) by business type and a different tax structure, so actual tax liabilities may differ from this calculator's results. For accurate calculations, consult a tax accountant or use the NTS (National Tax Service) Hometax system.

Q. What items are VAT-exempt?

A. VAT-exempt items include basic necessities (unprocessed food like rice, vegetables, fruit), medical and healthcare services, certain educational services (schools, some academies), financial and insurance services, books, newspapers, magazines, and goods/services supplied to the government. No VAT is charged on these items, so this calculator does not apply.

Q. Is issuing a tax invoice mandatory?

A. General taxpayers are required to issue tax invoices when supplying goods or services. Failure to do so may result in additional taxes. Receipts may substitute for tax invoices when selling directly to consumers, but tax invoices are mandatory for business-to-business transactions. Electronic tax invoices can be issued through the NTS Hometax website.

Q. How are decimals handled in reverse calculations?

A. When reverse-calculating supply price from total (total ÷ 1.1), decimals may occur. This calculator rounds the supply price using Math.round(), and VAT is calculated as total minus the rounded supply price. For actual tax invoice purposes, please consult a tax accountant or follow NTS guidelines for handling sub-won amounts.

Important Notice

  • Calculations are based on Korea's 10% VAT rate.
  • May not apply to simplified taxpayers, zero-rate businesses, or exempt businesses.
  • Decimals are rounded in reverse calculations.
  • This calculator is for reference only. Consult a tax professional for accurate tax processing.

Understanding VAT and How It's Calculated

Value Added Tax (VAT) is a tax levied on the value added during the transaction of goods and services. In Korea, a flat rate of 10% has applied since its introduction in 1977. Multiplying the supply price by 10% gives the VAT amount, and adding the supply price and VAT together gives the total (tax-inclusive) amount. The tax is borne by the final consumer but collected at each stage of the transaction and remitted to the government — making it an indirect tax.

VAT Practical Guide for Business Owners

Businesses collect VAT from customers on sales (output tax) and can deduct VAT paid on purchases (input tax). The net amount payable is calculated as output tax minus input tax. VAT returns are filed twice a year (January and July), with corporations required to file quarterly including estimated returns. Timely issuance and receipt of tax invoices is key to claiming input tax deductions, so using a VAT calculator to verify accurate supply prices and VAT amounts is an important business habit.

VAT Tax-Saving Tips for Freelancers and Small Businesses

Freelancers and small business owners can reduce their VAT burden by diligently collecting and retaining purchase tax invoices. Tax invoices for business-related expenses (rent, communication, vehicle maintenance, supplies, etc.) can be used as input tax deductions to lower actual tax liability. Credit card sales slips and cash receipts can also serve as input tax credit documentation. Small businesses with annual revenue under 80 million KRW may register as simplified taxpayers to benefit from lower effective rates. Choosing the right taxpayer type based on your revenue scale is crucial for tax efficiency.

This calculator is provided for informational purposes only.

Results are estimates and may differ from actual amounts.

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