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Korea: VAT-related rulings, court decisions

Korea: VAT-related rulings, court decisions

Various value added tax (VAT) developments in South Korea include the following:


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  • The tax authority, in a ruling, concluded that the exemption from VAT is available for a facility donated to a local government in exchange for obtaining business-related approval from that local government. (Sajeon-2019-0362 (28 August 2019)).
  • The Supreme Court of South Korea held that even when the timing of a service fee settlement is uncertain, the time of supply of the service for VAT purposes is when the provision of the service is completed. (2017du47564 (9 September 2019))
  • The Ministry of Economy and Finance determined that when the supply value of a car rental fee includes an insurance premium, the entire rental fee is subject to VAT. (VAT-493, 13 August 2019).

Read a 2019 report [PDF 816 KB] prepared by the KPMG member firm in South Korea

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