Blog > Blog > VAT > South Korea VAT on intra-group supplies clarified - Avalara

South Korea VAT on intra-group supplies clarified

  • VAT
  • 07 May 2013 | Richard Asquith

South Korea VAT on intra-group supplies clarified

The rules on delegation agreements and the South Korean VAT treatment between foreign companies and their local operations has been clarified recently.

The clarification was contained within a recent tax ruling involving the foreign telecommunications supplier, and its Korean subsidiary.  The subsidiary was offering supplies to local companies on behalf of its group parent.
The facts in this ruling are that a foreign company provides network services to multinational companies and their related companies worldwide and does not have a domestic place of business in Korea.  This included providing telco services to the Korean branches of other international companies.  The Korean VAT authorities deemed this to be a taxable supply in South Korea by the Korean telco subsidiary.


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.