New VAT rate on electronic services in South Korea

28 August 2015

As of 1 July 2015, electronic services (applications, e-books, MP3, music, films, etc.) supplied by a foreign service provider are now subject to 10% Korean VAT.  As a result of this, the Korean National Tax Service has implemented a simplified VAT registration procedure for electronic service providers and those affected should register within 20 days from the date of commencement of supplying these types of services.