Following recent amendments to South Korea's VAT law, from 1 July 2015 foreign supplies of e-services will be subject to Korean value added tax (VAT 10%) when provided to Korean consumers. E-services subject to VAT include supplies of games, music, video, electronic documents or software that are stored on a computer or other electronic device or are accessible through a computer or device in real time without being stored.
Foreign suppliers of such services are subject to simplified VAT registration and must file VAT returns through the Korea National Tax Service (NTS) website and make VAT payment through a foreign exchange bank designated by the NTS. Although not initially clear from the legislation, the requirements apply for both B2C and B2B e-service supplies.
Click the following link for a notice issued by the NTS dated 14 May 2015.
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