South Korea Value Added Tax (VAT) Frequently Asked Questions

South Korean Value Added Tax to be Charged by Amazon to Sellers on the Provision of Remote Electronic Services

South Korea Value Added Tax (VAT) collection on remote services to expand on September 1, 2019, for South Korean residents.

The South Korean Government has expanded existing legislation requiring non-resident companies providing “remote services”, to begin collecting South Korean VAT on additional services, when they are provided to South Korean residents who are not registered for VAT. In this context, remote services provided by Amazon now include the Selling on Amazon fees (listing/referral services), monthly subscription fees, and Sponsored Ads. The expanded rules take effect from September 1, 2019. Unless a seller has provided Amazon with its South Korean Business Registration Number (BRN) as evidence that it is VAT-registered in South Korea, the rule requires Amazon to collect and remit South Korean VAT at a standard rate of 10% on Selling on Amazon fees paid by sellers who are residents of South Korea. Amazon is taking the corresponding actions starting from September 1, 2019, giving sellers sufficient time to prepare for and update their BRN on Seller Central.

South Korean sellers who provide Amazon with their BRN will not have VAT of 10% applied to their Selling on Amazon fees. Please see the FAQs below for the VAT to be collected by Amazon before the seller provided Amazon with a BRN.

To provide Amazon with your South Korean BRN:

1. Log into Seller Central .
2. Under Settings choose Account Info.
3. In the section Tax Information, click on VAT information.
4. From the list of countries, select South Korea.
5. Add your 10-digit South Korean BRN. For example: ‘123-45-67890’.
6. Click I accept and acknowledge all conditions set out in the Tax registration agreement.
7. Click Save

To learn more, or understand how this new regulation impacts your Selling on Amazon account, please visit the South Korean National Tax Services website

I already have a BRN. Could I provide this information to Amazon right away?

You may provide your BRN at any time, by logging onto your selling account and following the steps above.

Sellers who have a valid VAT ID will not be subject to 10% VAT on their selling on Amazon fees.

What are the specific examples of Amazon service fees that South Korea VAT is charged for?

Effective from September 1, Amazon will calculate, collect, and remit 10% VAT on Selling on Amazon Fees for KR Sellers who do not have a valid BRN on file. Selling on Amazon fees that are subject to new VAT rules are:

• Referral Fees
• Monthly Subscription fees
• Advertising fees

How do I obtain a South Korean BRN?

You can register for a South Korean BRN online by visiting the National Tax Services or consult your tax and legal adviser.

Please note that we will charge you VAT unless you are registered for VAT in South Korea and have provided your BRN to Amazon.

How is South Korean VAT Charged?

Amazon will charge South Korean sellers a standard rate of 10% VAT on the Selling on Amazon fees if the seller does not have a valid South Korean BRN on file as evidence that it is VAT-registered.

Amazon will begin calculating and collecting South Korean VAT on Selling on Amazon fees effective, September 1, 2019.

Does the South Korea VAT rule apply to both Professional and Individual selling accounts?

Yes, although the list of service fees can vary between Professional and Individual accounts, the ESS rule applies to both Professional and Individual accounts. In this regard, in each case, if a BRN is not provided, Amazon must impose the 10% VAT.

Will Amazon inform me regularly if I do not add my BRN on Seller Central?

No, it is sellers’ responsibility to check and manage their VAT information status. Amazon provides general announcements to Sellers on Seller Central but does not inform individual Sellers Amazon is required by law to collect a 10% VAT on Selling on Amazon service fees unless a BRN is provided.

If I do not have a valid BRN on file, how often will Amazon calculate and collect 10% VAT from my selling fees?

Amazon will calculate and collect the 10% VAT on your Selling on Amazon service fees on each order sold.

How do d I check if Amazon collected 10% VAT, Seller Central?

In Seller Central, under Order Details page you will see Tax sections.

Will Amazon provide me with an invoice for any South Korean VAT collected on Selling on Amazon fees?

Amazon is not required to issue tax invoices under the South Korean legislation. All monthly activity can be found in date range reports. You can view these reports by going to Seller Central > Reports > Payments > Date Range Reports > and selecting a transactional report for a particular timeframe.

I am no longer a resident of South Korea, and I have updated all my information to reflect my current address. Can Amazon refund previously-charged South Korean VAT to my seller account?

Amazon is required to charge and remit South Korean VAT based on the information in your seller account. At the time the VAT was calculated and collected, Amazon had enough information to associate your account with South Korea. Amazon cannot refund South Korean VAT without a valid South Korean BRN on file.

I am not a South Korean resident; will Amazon charge my account South Korean VAT on fees?

If you are not a resident of South Korea, Selling on Amazon fees through your selling account will not be subject to South Korean VAT collection. Consult your tax advisor to help you understand if you have any VAT obligations in South Korea.

Why is Amazon continuing to collect South Korean VAT when I have provided a valid South Korean BRN?

Amazon will not calculate and collect South Korean VAT if you have provided a valid South Korean BRN as evidence that you are VAT-registered in South Korea.

However, there may have been VAT collected on the orders due to timing. Amazon calculates South Korean VAT when an order is placed, and charges it to the seller account when the order is shipped. Therefore, South Korean VAT may have been collected on orders placed prior to the time you provided your South Korean BRN.

I updated my information to reflect my current address, which is outside South Korea. Why is Amazon continuing to collect South Korean VAT?

Amazon calculates South Korean VAT on fees when an order is placed, and collects it when an order is shipped. If the information you provided at the time of shipment indicated you were a resident of South Korea, then South Korean VAT will have been collected. This might have occurred if there were pending orders before you updated your current address and payment information.

Go to Seller Account Information and review each section to ensure that all of your information is complete and accurate.

Note that there may be several addresses and payment methods associated with your seller account.

Can Amazon help me with my tax return?

While we are committed to helping sellers, we do not provide tax advisory or compliance services. Please contact a tax advisor.

For other inquiries, please contact Selling Partner Support through Seller Central. You can contact Amazon Selling Partner Support through the Contact us form:

1. Choose Selling on Amazon
2. Click Other issues and then Tax Questions
3. Under What are your tax questions, state your inquiry.