Overseas payments for global projects are subject to Value Added Tax (VAT) reporting in the same way as domestic payments.
However, if you proceed with simplified export declaration, a zero rate (0%) may be applied in accordance with Article 21 of the Value Added Tax Act.
✅ Overseas payments are also settled in KRW, so VAT reporting is mandatory.
- Even if overseas supporters pay in foreign currency, the amount paid to the maker is entirely based on KRW.
- Therefore, VAT reporting is required for overseas payments.
✅ If recognized as an export, a zero rate can be applied.
- If you complete a simplified electronic commerce export declaration, you can apply a VAT zero rate (0%) to the corresponding overseas sales.
- This is a system that allows you to receive a refund of input tax without the burden of VAT, and it is automatically linked to export performance through the HomeTax system.
- When applying the zero rate, the sales tax becomes 0 won because VAT is not added to overseas payments, and the input tax incurred is fully refundable.
| Category | Sales | Purchase | Final Tax Payable |
| General Domestic Transaction | KRW 1,000 = Supply Value KRW 900 + Tax KRW 100 (Supply Value X 10%) | KRW 100 = Transaction Value KRW 90 + Tax KRW 10 | Sales Tax KRW 100 - Input Tax KRW 10 = KRW 90 |
| Overseas Export Transaction | KRW 1,000 = Supply Value KRW 900 + Tax KRW 0 (Supply Value X 0%) | KRW 100 = Transaction Value KRW 90 + Tax KRW 10 | Sales Tax KRW 0 - Input Tax KRW 10 = △KRW 10 (Refund) |
📌 Notes
- This information is provided for general information purposes only.
- This information may not reflect the latest legal information or tax-related guidelines.
- Therefore, please consult with a professional before making any decisions regarding specific legal or tax matters.