Saving Your VAT
I’d like to introduce how we can save your VAT through your credit/debit card, it looks like a bit complicated to register your credit card on the NTS website but once it registered you can save it around 3-5 % average of your credit card payment continuously.
According to the statistics, 3-5% of credit-card payment amount is potential VAT refundable amount if it’s controlled by registered credit card as below;
1. Credit card which is able to register at https://www.hometax.go.kr, your accountant can apply VAT refund with this excel data downloaded from this website. This is because your accountant need all of biz registration information of your vendor including current biz status as well. Practically it’s impossible to entry all of these data from your receipts manually itself.
2. Download your credit/debit card payment from the above NTS site into a excel sheet for easy upload. NTS also provide all of your vendor’s information if you registered your credit card as your biz purpose.
During the month, we got 10% VAT advance with the sales amount and used to fall in trouble whenever we pay it every quarter if it’s not reserved. If it’s less than 10 mio.won quarterly, you can pay it at http://www.cardrotax.or.kr/index.giro by 3-month installment. I recommend this payment method to spread your VAT payment by 12 months.
And also I’d like to introduce how you can refund your VAT paid overseas for exhibitions, seminar or biz travel, you need to ask some evidence like a invoice or statement if it’s more than 150Euro in European countries with a proper info. on those evidence including the name of your company, address and name on the passport for VAT refund. Expenses are various from rent-a-car, hotel charge, transportation and the VAT rate is also 7-29%.
Minimum refund is 500 Euro, and almost all of EU countries are eligible to refund but can’t from USA, Hong Kong and China. There is no payment for this refund in advance but VAT refund service fee usually charged based on the success. jz@taxjz.com
