This article is for buyers located in South Korea.
Value Added Tax (VAT) is a tax imposed by the Government of Korea on sales of goods and services including electronic services purchased by a Korean end-consumer.
The National Tax Service of Korea (“NTS”) has advised Envato, as a non-resident supplier of electronic services to Korean residents, that it has an obligation to charge VAT on the supply of electronic services acquired by Korean individuals.
Envato is now registered for VAT in South Korea and will begin charging VAT to non-VAT registered buyers resident in Korea with effect from 25 May 2020 and remitting the tax collected to the NTS. If you have a VAT registration in Korea, please include it in your billing details or at checkout, to ensure that VAT is not applied to your purchase.
FAQ for Buyers located in South Korea
What rate of tax is applied?
The rate of tax applied to your purchase will be a flat rate of 10%.
Does VAT apply to all items bought from?
VAT is applied to electronic services supplied through information and communication networks. Electronic services include audio or video files, software or other works which are manufactured or processed in the form of code, letters, voices, sounds, images etc.
Support services do not fall within the definition of electronic services as these necessitate some human intervention.
What if I am registered for VAT in Korea?
VAT is generally only applied to individual customers that do not have VAT registration. The supply of electronic services for taxable business activities of registered businesses or for tax-free business activities will be free from VAT.
If you are a registered business or a tax-free business, please update your billing details to include your VAT registration number.
Envato will be collecting VAT on sales completed by customers with a Korean billing or payment address unless and until this information is received.
Where to find invoices?
All additional information regarding invoices can be found in the Buyer’s Guide.
You will also be able to see VAT on your statement page which can be accessed through your account settings.