Korea VAT rules update

The Korean Finance Ministry is bringing forward a range of Value Added Tax and Customs for implementation in 2014.  Aside from improving the administration of tax, the Korean VAT changes will also help expand the indirect tax base.

• Importers will be able to seek a restatement of the customs duties valuation of goods if it seeks approval from the border authorities.  However, there has also been an extension on the statute of limitations for customs reassessments

• Beauty treatments and plastic surgery are to be brought into the VAT net
• The allowance of the reverse charge for the transfers of companies
• A range of exceptions to when import invoices may be reissued
• Input VAT deductions on agricultural goods is to be limited to 30% of the taxable sales value

Click for free South Korean VAT info