Skip to main content
Ink·tab

Net ↔ VAT ↔ Gross

Type in any of the three cells; the other two follow. Standard, simplified, or exempt.

Tax type
Effective VAT rate 10%
For live quote / invoice lines. File via Hometax or your tax preparer.

When to use it

You're typing a quote, an invoice, or a tax invoice and need to confirm "KRW 100,000 + VAT" exactly — or you're starting from a gross total and need the supply price and VAT split. Or you want the effective rate for a simplified-tax industry bracket.

Three cells, one calc

Net (supply), VAT, and gross — type into any of the three and the other two follow. The cell you last edited stays highlighted; switching mode (standard / simplified / exempt) recomputes from that cell.

Modes

  • Standard (10%) — Net × 10% = VAT. Most corporates and standard sole proprietors.
  • Simplified — One of five industry brackets (15/20/25/30/40%) × 10% = an effective VAT rate of 1.5–4%. Sole proprietors with prior-year supply value under KRW 80M qualify (as of 2024-07).
  • Exempt — VAT 0%. Healthcare, education, books, primary produce, and other statutorily exempt categories.

Simplified industry brackets (Schedule 4)

| Group | Value-added | Effective VAT | Industry | |---|---|---|---| | 1 | 15% | 1.5% | Retail, recyclable-materials trading, food & beverage | | 2 | 20% | 2.0% | Manufacturing, primary (agri/forest/fish), small-cargo carriage | | 3 | 25% | 2.5% | Lodging | | 4 | 30% | 3.0% | Construction, transport & warehousing, ICT, other services | | 5 | 40% | 4.0% | Finance & insurance, real-estate rental, professional services, facilities management |

Effective from 2021-07-01. The tool needs an update if the Decree changes.

Zero-rated is different

Zero-rated transactions (exports, foreign carriage, foreign-currency earnings) also have 0% VAT, but unlike exempt items they allow input VAT credit. This tool models both as zero VAT for the calculation — the input-credit difference belongs to your tax preparer.

Not the right tool when

  • Filing the VAT return — this is per-line arithmetic. Quarterly filings, annual aggregation, deemed input VAT, the under-KRW-48M small-business special, and credit caps are not modeled. Use Hometax or your tax preparer.
  • Withholding tax or income tax — separate regimes. This tool is VAT only.
  • Non-Korean VAT — EU VAT, Japan consumption tax, US sales tax all have different brackets and filing structures. Korea-only here.

Amounts stay on the page

Company sales, vendor payments, quote line items — none of it is uploaded. All calculations are client-side arithmetic (add, multiply, round); no number leaves the page.

Frequently asked questions

Standard vs simplified — what's the difference?
Standard taxpayers owe 10% of net sales as VAT. Simplified taxpayers owe net × industry value-added rate × 10% — so an effective rate of 1.5%–4%. As of 2024-07, sole proprietors with prior-year supply value under KRW 80M qualify for simplified.
What sets the simplified industry brackets?
VAT Act Enforcement Decree, Schedule 4 (effective 2021-07-01). Five groups: retail/F&B 15%, manufacturing/primary 20%, lodging 25%, construction/logistics/ICT/services 30%, finance/insurance/real-estate-rental/professional 40%. For mixed-industry businesses, the dominant-revenue industry rate applies.
Exempt vs zero-rated — what's the difference?
Exempt = no VAT at all and no input-VAT refund. Zero-rated = VAT rate is 0% but input VAT is refundable (exports, foreign carriage, etc.). This tool treats both as zero VAT for calculation; the input-credit difference is documented but not modelled.
How are sub-won amounts handled?
Math.round — 0.5 and above rounds up. Real tax invoices may use truncation, banker's rounding, or round-up depending on the issuer's policy and ERP — verify on issue.
Can I file with these numbers?
No. This tool is for live quote and invoice lines. Special rules for under-KRW-48M businesses, deemed input-VAT, and credit caps are not modeled. File via Hometax or your tax preparer.