- South Korea’s National Assembly accepted a proposal to amend the VAT Act for the 2025 budget
- The amendment aims to boost digital compliance, prevent tax evasion, and support small businesses
- Key change includes extending VAT deduction for e-invoices until December 31, 2027
- Extension targets individual business owners with annual goods and services supply below 300 million KRW
- The bill proposes increasing surcharge rates for businesses misrepresenting operations
- Surcharge for general taxpayers to rise from 1% to 2%, and for individual taxpayers from 0.5% to 1%
- New measure to impose VAT on businesses issuing invoices without actual supply of goods or services
- This measure targets tax evasion through the issuance of fake invoices
- Amended VAT Act set to take effect on January 1, 2025, coinciding with the new fiscal year
Source: ifcreview.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
