Korean VAT calculator
Net to gross or gross to net — give whichever figure you have and the other two follow.
Korean VAT is 10%, set by Article 30 of the Value-Added Tax Act. What trips people up is the direction: to pull the VAT out of a gross 1,100,000 you divide by 11, not subtract 10%. Say which figure you already know and this works out the rest.
The figure you have
What you enter is saved in this browser, so it is still here next time
The amount with VAT already in it — divide by 11 to split it out.
10% under Article 30 of Korea's Value-Added Tax Act. Use 0% for zero-rated supplies.
Split out
VAT
₩100,000
As written on an invoice
- Net
- ₩1,000,000
- VAT
- ₩100,000
- Gross
- ₩1,100,000
Calculated
- Net
- ₩1,000,000
- VAT
- ₩100,000
- Gross
- ₩1,100,000
Tax invoices are written in whole won, so fractions are dropped. Truncating the net and the tax separately leaves the total a won out, so the total is held and the tax adjusted.
To pull VAT out of a gross figure you divide by 11, not subtract 10%. The VAT inside 1,100,000 is 100,000, not 110,000.
Common amounts
| Gross | Net | VAT |
|---|---|---|
| ₩110,000 | ₩100,000 | ₩10,000 |
| ₩550,000 | ₩500,000 | ₩50,000 |
| ₩1,100,000 | ₩1,000,000 | ₩100,000 |
| ₩3,300,000 | ₩3,000,000 | ₩300,000 |
| ₩11,000,000 | ₩10,000,000 | ₩1,000,000 |
This is for ordinary taxpayers. A simplified taxpayer multiplies the gross by a value-added ratio set for their line of business before the rate applies, so the tax is far smaller. Those ratios sit in the Enforcement Decree and are amended often, so they are not reproduced here.
Left at the default, 1,100,000 splits into 1,000,000 and 100,000
The default is a gross of 1,100,000 won. Divided by 11 that gives a net of 1,000,000 and VAT of 100,000. Mark the same 1,100,000 as the net and the answer changes: VAT of 110,000 and a gross of 1,210,000. Which one is right has nothing to do with the rate; it depends only on whether the tax is already inside the figure you have. A quote marked "VAT excluded" is a net figure, while the amount charged to a card is a gross one. The table of common amounts underneath always reads its figures as gross.
Type 0.1 in the rate field and you get 1,099 won
The rate is taken as a percentage. 10 means 10%; 0.1 is read as 0.1%, and the VAT inside 1,100,000 comes out as 1,099 won. For zero-rated supplies — exports and the like, under Articles 21 to 24 of the Act — enter 0 and the gross equals the net. Exempt supplies under Article 26 are a different thing: the rate is not 0%, the tax simply does not apply, so there is nothing for this screen to split.
Common questions
QDoes this tell me how much VAT I have to pay?
No. This screen only splits a single transaction into net, tax and gross. The amount payable on a return is output tax minus input tax (Article 37 of the Act), which means gathering every tax invoice you issued and every one you received.
QIs the VAT in 1,100,000 equal to 110,000 or 100,000?
100,000. A gross of 1,100,000 is a net of 1,000,000 plus 100,000 of VAT, so you divide the gross by 11. Taking 10% off the gross gives 990,000, and 10% of that is 99,000 — the numbers do not close.
QHow are fractions of a won handled?
Tax invoices are written in whole won, so anything below one won is dropped. Both the rounded and unrounded figures are shown. Truncating the net and the tax separately can leave the total a won out; in practice the total is held and the tax adjusted.
QDoes this work for simplified taxpayers?
No. A simplified taxpayer multiplies the gross by a value-added ratio set for their line of business before applying 10%, so the tax is far smaller. Those ratios sit in the Enforcement Decree and are amended often, so they are not copied here — check your business type with the National Tax Service.