What exchange-rate date should I use to file App Store and Google Play settlement income?
You should convert the foreign currency to KRW at the settlement-date exchange rate based on Apple's or Google's settlement statement and book it as revenue — mixing up the settlement timing with the actual deposit timing and booking it roughly is a common cause of revenue being omitted or double-counted when filing VAT. If it meets the requirements for a foreign-currency-earning good or service, you can also review applying the zero VAT rate, and since advertising revenue and in-app purchase revenue have different paying parties and settlement structures, it helps to keep documentation for each platform's settlement records separate for an accurate filing.
Income Structure Features for App Developers
Key Necessary Expense Items
Tax Advantages for App Developers
Zero-rate VAT on App Store and AdSense income
Settlements through overseas platforms can be reviewed for zero-rate VAT (0%) if they meet the foreign-currency-earning good or service requirements.
Consolidated management of a multi-app portfolio's revenue
We streamline filing by consolidating small, scattered revenue from multiple apps under a single business.
Making the most of solo-developer tax benefits
We review programs that benefit solo developers, like the Nolan Umbrella Fund and small-business tax reductions.
The Most Common Mistake in the Field
Booking App Store and Google Play settlement amounts roughly without converting them to KRW properly, or mixing up the settlement timing with the actual deposit timing, is a common cause of revenue being omitted or double-counted when filing VAT.
In-App Purchase Revenue: Sale Date or Settlement Date?
The App Store settlement lag makes it easy to miss the correct revenue-recognition timing
Settlements arrive on a one-to-two-month lag
The App Store and Google Play deposit settlement funds to developers one to two months after the month the sale actually occurred. Booking revenue as of the settlement deposit date misaligns it with the tax period the sale (service provision) actually happened in, which can push back the timing of your VAT and income tax filings.
The principle is the actual sale (service provision) date
The principle is to recognize revenue in the month the sale actually occurred, based on the daily and monthly sales report in the App Store dashboard. Booking by the sale date rather than the settlement deposit date prevents revenue-recognition-period errors.
A Must-Check If You're On-Site for Outsourced App Development — Disguised Subcontracting & Employee Status
Even a per-project subcontract can be judged as employment based on your actual working reality
Working on-site under a client's control carries disguised-subcontracting risk
If you develop on-site at a client with fixed working hours and receive direct work direction and attendance management from the client, your actual status may be judged as an employee even if your contract says subcontracting. If disguised subcontracting is found, it can lead to retroactive four-major-insurance enrollment and back taxes on employment income.
Deliverable-based contracts are safer
A structure where you contract based on deliverables — like an app launch or completed feature — and can decide your own development methods and hours keeps a subcontracting (business income) contract safe.