Collect tax in South Korea

Learn how to use Stripe Tax to calculate, collect, and report tax in South Korea.

In South Korea, Stripe only supports VAT for digital services. In Stripe, these are called digital products. You must also be a remote seller with no physical presence in the country to collect this tax on Stripe.

When to register for tax collection

Use the Thresholds tab to get insights about your potential tax registration obligations in South Korea. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the monitoring tool works.

Remote sellers providing digital goods or electronically supplied services (digital products) to consumers in South Korea must register for VAT purposes as from the first sale. There are no registration thresholds for non-resident service providers. Sales to business customers in South Korea do not trigger any tax registration obligations as remote sellers are not required to collect tax on such sales.

Threshold: 1 transaction

Time frame: 12 months

Included transactions: Business-to-consumer (B2C) sales of digital goods and services

How to register

You must be a remote seller with no physical presence in South Korea to collect this tax on Stripe.

Find more information on how to register for VAT in South Korea on the government website.

After you’ve registered to collect tax in South Korea, add your registrations to Stripe in the Registrations tab in the Dashboard. This turns on tax calculation and collection in Stripe for your transactions in South Korea.

Learn more about how to add your registration in the Dashboard.

How we calculate taxes

We only support calculations for digital products (non-physical items or services that are delivered, given, or rendered electronically) in South Korea. Stripe doesn’t calculate tax for any product not using a digital product tax code.

View the list of supported digital product tax codes. To calculate taxes in South Korea, make sure you have assigned a tax code to each of your products.

How to report and file your taxes

Stripe provides reports of your completed tax transactions. To access these reports, go to the Registrations tab. Learn more about the different types of reports.

You’re responsible for filing and remitting your taxes to South Korea. Stripe doesn’t file taxes on your behalf.