Can I claim the input tax credit on packaging costs and delivery app fees too?
Cups, holders, and straws are business-related supplies that are fully deductible at the time of purchase, and since a high-turnover takeout shop tends to have larger packaging spending, it's important to track it all. Delivery app settlement amounts are already net of brokerage fees, so you need to report based on total revenue (before fees) and combine it with in-store sales to avoid omissions. A small espresso machine or store interior is also subject to depreciation once it exceeds 1 million KRW.
The Most Confusing Part — High Turnover and Parallel Delivery App Settlement
With no seating and a very high turnover structure, revenue and packaging management are key
Even a small store's interior is subject to depreciation
Even if the store is small, if interior and fixture investment exceeds 1 million KRW, it's classified, in principle, as a depreciable asset and must be expensed over its useful life.
Running delivery apps alongside your store requires consolidated settlement
If you operate both in-store sales and delivery app orders, delivery app settlements arrive net of fees, so you must report based on total revenue. Combine in-store and delivery sales to make sure nothing is missed.
Income Structure of Takeout-Only Shops
Key Expense Items
Must-Read for Takeout-Only Shop Owners
Split Your Small Equipment & Packaging Costs by Type to Save on Taxes
From the espresso machine to delivery app fees, categorizing each item correctly cuts unnecessary tax
Long-Term Fixed Assets — Depreciable Equipment
Extraction equipment: small espresso machine, grinder
Store equipment: compact store interior, POS system
If a single transaction exceeds 1 million KRW, it's classified as a depreciable asset and must be expensed over its useful life.
Raw Materials & Packaging — Immediately Deductible
Coffee beans, milk, syrup, and packaging supplies like cups, holders, and straws are fully expensed at the time of purchase. With such a high turnover, packaging spending is significant, so track it all.
Personnel Service Costs — Part-Time Wages
Part-time staff require withholding tax filing (by the 10th of the following month) and a payment statement submission, regardless of hours worked.
Delivery App Fees
Delivery app brokerage and payment processing fees are recurring monthly expenses that are fully deducted at the time incurred, and should be combined with in-store sales to manage total revenue.
| Category | Examples | Tax Treatment |
|---|---|---|
| Long-term fixed assets | Small machine, grinder, store interior | Depreciate if over 1 million KRW |
| Raw materials & packaging | Coffee beans, milk, syrup, cups/holders/straws | Fully deductible at purchase |
| Personnel services | Part-time staff | Withholding tax filing, payment statement submission |
| Delivery app fees | Brokerage & payment processing fees | Immediately deductible, combine with total revenue |