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South Korea proposes push of VAT liability onto credit card companies

  • VAT
  • 14 March 2013 | Richard Asquith

South Korea proposes push of VAT liability onto credit card companies

In an effort to reduce VAT fraud - retailers under reporting VAT sales to foreign customers - the South Korean Ministry of Finance has proposed pushing the responsibility and liability of VAT onto credit card companies.

South Korean VAT is currently 10%.

A new VAT Bill is to be put forward later this year which will include the obligation for credit card companies to monitor retail sales through its cards, and charge VAT on top to their business vendors.  It is estimated that this could raise over US$ 6 billion.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.