South Korea VAT coronavirus reliefs
- Apr 17, 2020 | Richard Asquith
17 April update - small taxpayer (revenue up to KRW 48million) are exempted from charging or remiting VAT until 31 December 2020 on goods and services.
1 April - South Korea has introduced a number of Value Added Tax easements to help businesses during the economic slowdown. The easements include:
- Small businesses below KRW 80million annual turnover will enjoy reduced VAT payments for the rest of 2020.
- The threshold for micro businesses to enjoy reduced VAT is being increased from KRW 30million to KRW 48million until the end of this year.
- Tax filings and payment delays of up to nine months may be provided on application.
- A 70% discount on VAT on car purchases from March to the end of June.
There are also a range of direct tax reliefs, targeting areas most affected. Follow Avalara’s live global coronavirus Covid-19 VAT tracker of measures being introduced to reduce the tax burden.