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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.

Explore more content like this in our Building for COVID-19 recovery hub

Latest South Korean news

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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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