South Korea: Tax Calendar for Q1 2022 VAT Return Filing Deadline and Procedures
The South Korean National Tax Service published a notification on April 7 clarifying the tax deadline for VAT payments and VAT return submission for the first quarter of 2022.
Key highlights of the notice:
- Business must file and pay the VAT for the period Q1/2022 by April 25 (Mon).
- Procedure on how to pay the VAT.
- Early payment of refunds to small and medium-sized enterprises (SMEs) and companies affected by COVID-19 (early payment of refunds). Eligible businesses should apply by April 20.
- Application procedures for a tax payment deferral for qualified businesses.
Note: Individual business owners affected by the COVID-19 and areas which have been recently declared as special disaster zones due to wildfire damage are exempt from the notice.
Other information: South Korea’s VAT Law Changes for 2022
In South Korea, the VAT rate is 10%. Foreign companies that provide electronic services to consumers in Korea (B2C) must follow Korean VAT obligations. Further, electronic VAT invoicing is required. Penalties apply if a taxpayer fails to produce an e-invoice to the tax authority.
Source: nts.go.kr
