South Korea levies 10% VAT on foreign digital services
- 19 December 2018 | Richard Asquith
South Korea is to require non-resident providers of digital services to consumers liable to charge 10% VAT from 1 July 2019.
The services subject to VAT will include online advertising and other services. This will affect companies such as Amazon, Facebook and Google. It is expected that the measure will raise WON 400 billion (approximately €310 million) per annum.
The measure comes as EU countries struggles to agree on a 3% Digital Services Tax on such supplies to capture non-resident profits being made by the digital giants.
Latest South Korean news
December 18, 2018
South Korea is to require non-resident providers of digital services to consumers liable to charge 10% VAT from 1 July 2019...
August 5, 2018
The Republic of Korea (South Korea) has extended the scope of VAT to non-resident B2C providers of cloud computer services. This new liability will...
June 25, 2016
The South Korean tax office has ruled that non-resident online market place intermediaries are liable to collect VAT on e-services provided to consumers. This...