Any business supplying goods or services — individual or corporate, Korean or foreign — is in principle liable for VAT. Simplified taxpayers (annual sales under KRW 104 million) get a lower rate and easier filing but limited input-tax credit, so if reclaiming input VAT matters for your business, general taxpayer status can be the better fit.
With an alien registration card or domestic residence report, you can verify your identity and register on the Hometax website, then handle business registration, tax invoice issuance, and VAT/income tax filing entirely online.
Registering and using Hometax
Compare simplified vs. general taxpayer status in advance
If you expect annual sales under KRW 80 million and few input-VAT-eligible expenses, simplified taxpayer status can be advantageous. But for businesses with significant upfront investment or purchases (equipment, etc.), registering as a general taxpayer to reclaim input VAT is often the better move.