VAT Guide for Transport & Logistics in South Korea
Transport & Logistics operating in South Korea charge the standard VAT rate of 10%. Registration becomes mandatory at KRW 80,000,000 (~€55,000), returns are filed quarterly with monthly prepayments, and cross-border B2B services are generally reverse-charged to the customer.
| Standard rate | 10% |
| Reduced rates | None |
| Registration threshold | KRW 80,000,000 (~€55,000) |
| Filing frequency | Quarterly with monthly prepayments |
| Currency | KRW |
| In force since | 01 Jul 1977 |
| Last verified | 01 Sept 2026 |
Official source
National Tax ServiceFigure verified on 01 Sept 2026. Every rate on this page is traceable to the authority above.
Worked examples
Domestic sale in South Korea
You invoice a customer based in South Korea for ₩1,000 of transport & logistics work.
Add 10% VAT: ₩100. Total invoiced ₩1,100, declared in your quarterly with monthly prepayments return.
Cross-border B2B inside the EU
A VAT-registered business in another member state buys the same ₩1,000 service and supplies a valid VAT number.
Invoice at 0% under the reverse charge, state "Reverse charge — Article 196 VAT Directive", and report the sale on your EC Sales List.
Sales to consumers in another EU country
You sell ₩12,000 per year to private customers in other member states.
Past the €10,000 distance-selling threshold you must apply the destination rate and declare the sales through the One-Stop Shop.
Late filing exposure
Your quarterly with monthly prepayments return is filed after the deadline.
10-40% penalty tax for underreporting. Additional 20% for fraudulent returns.
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Check my Tax Health ScoreCompliance checklist
- Confirm whether you are above KRW 80,000,000 (~€55,000)
- Register with National Tax Service before your first taxable supply
- Apply 10% on domestic sales and the reverse charge on EU B2B
- Validate every EU customer VAT number in VIES and keep the proof
- File quarterly with monthly prepayments and archive invoices for the statutory period
- Mandatory e-Tax Invoice via HomeTax
- Reverse charge for B2B digital services from abroad
FAQ — Transport & Logistics in South Korea
When must transport & logistics register for VAT in South Korea?
Registration is required at KRW 80,000,000 (~€55,000). Voluntary registration below that level is possible and usually worthwhile when you buy a lot of taxable inputs, because it lets you reclaim input VAT.
Which VAT rate applies to transport & logistics in South Korea?
The standard rate is 10%. Applied since 1977-07-01, last verified against National Tax Service on 2026-09-01.
How often do I file VAT returns in South Korea?
Quarterly with monthly prepayments. 10-40% penalty tax for underreporting. Additional 20% for fraudulent returns.
What must appear on an invoice in South Korea?
Electronic Tax Invoice mandatory for most businesses via HomeTax system. Must include business registration number.
Do I charge VAT to business clients in other EU countries?
No. For B2B services within the EU the reverse charge applies: invoice at 0%, quote both VAT numbers, add the reverse-charge mention and report the transaction on your recapitulative statement. Always validate the customer's VAT number in VIES first.
What is specific to South Korea for my sector?
Mandatory e-Tax Invoice via HomeTax · Reverse charge for B2B digital services from abroad · Zero-rate for exported goods and services
Disclaimer : This tool is provided for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor for decisions regarding your tax situation.Source : EU VAT Directive 2006/112/EC
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