Naver Smart Store Tax Guide

From the gap between the settlement amount and your actual revenue to ad-spend and packaging-material expense treatment — a tax guide built for Smart Store sellers.

Your product follows keep growing — your revenue should grow on accurate data too

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I only filed the amount I actually got settled from Smart Store as revenue — is that a problem?

Yes, it can be. The settlement amount already has the sales commission and similar fees deducted, but VAT must be filed based on the actual sale price — the supply value — so filing only the settlement amount as revenue can count as under-reporting and expose you to amended filings and penalties. We recommend filing based on the VAT filing data available under Smart Store's settlement-management menu, recording the total sale price as revenue and the commission as a separate expense.

Characteristics of Smart Store Income Structure

Regular settlement on business days, paid out after the sales commission is deducted
Revenue structure tied to repeat-purchase marketing like store follows and notification opt-ins
Naver Pay point accrual/use affects the settlement amount
Participating in Shopping Live or featured promotions can generate separate settlement items
Converts from simplified to general taxpayer once annual revenue exceeds ₩104 million

Key Deductible Expense Items

Online ad spend such as shopping search ads and Power Link
Product photography and product-page design fees
Packaging materials (boxes, cushioning) and shipping costs
Smart Store sales commission
Model/reviewer fees (3.3% withholding when paid to freelancers)

Tax Advantages for Smart Store Sellers

Check the dedicated VAT filing data

The [Settlement Management > VAT Filing Details] menu separately provides data based on the actual sale price (supply value), not the settlement amount. Filing on this data prevents under-reporting.

Online ad spend is fully deductible with no cap

Online advertising aimed at the general public, such as shopping search ads, is classified as advertising expense — unlike entertainment expense, it's fully deductible with no cap.

Consolidate management if you also run Coupang or your own store

If you run multiple channels together, you must consolidate each channel's settlement data to avoid missed revenue.

The Most Common Mistake We See

The most common mistake is filing only the settled amount as revenue. You must record the total sale price — not the settlement amount with the commission already removed — as revenue, and expense the commission separately; confusing the two can lead to under-reporting, amended filings, and penalties.

Frequently Asked Questions

Channels May Differ, but 103Tax Handles the Tax Troubleshooting

Tax Accountant Kwon Ji-hyun, who knows the Smart Store settlement structure precisely, is ready to consult with you

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