Do I need to report revenue from goods like frames and calendars sold on top of the shoot fee?
Yes, goods sold separately from the shoot fee — frames, calendars, photo books, and the like — must all be included in the tax base for VAT filing, and omitting them can become an issue in a future tax audit. Treats and toys used to guide the pet, along with disinfecting and cleaning supplies, are expensed in full as consumables at the time of purchase, and amounts paid to animal handlers or assistant staff are business income subject to 3.3% withholding.
The most confusing part — goods sales and consumable management
Incidental revenue beyond the shoot fee and pet-shoot-specific consumables are easy to overlook
Goods sales must also be included in reported revenue
Goods sold separately from the shoot fee — frames, calendars, photo books, and the like — must all be included in the tax base for VAT filing. Omitting goods sales from revenue can become an issue in a future tax audit.
Consistently record treats, props, and cleaning supplies as consumables
Treats and toys used to guide the pet, along with post-shoot disinfecting and cleaning supplies, are expensed in full as consumables at the time of purchase. Since this spending occurs on every shoot, the total can add up, so keep receipts.
Income structure of a pet specialty studio
Key expense categories
Must-read for pet specialty studios
Sort filming equipment and consumables by category to save on taxes
From lighting/backdrop equipment to outsourced goods production, sorting each item correctly reduces unnecessary tax
Long-term fixed assets — depreciable equipment
Camera/lenses: camera with fast shutter speed response, telephoto/standard lenses
Lighting/backdrop: studio lighting set, backdrop system
Safety equipment: shoot safety fencing/props
Anything over 1,000,000 KRW per unit is classified as a depreciable asset and must be expensed gradually over its useful life.
Consumables — expensed immediately
Treats/toys (used to guide the animal), disinfecting/cleaning supplies, and shoot props (ribbons, costumes) are consumable spending incurred on every shoot and are expensed in full at the time of purchase.
Personal service costs
Amounts paid per contract to animal handlers and assistant shoot staff are business income subject to 3.3% withholding, filed and paid by the 10th of the following month.
Outsourced goods production costs
If you outsource production of frames, calendars, photo books, and similar goods, the production fee paid is recognized as a necessary expense, and if you obtain a tax invoice you can also claim the input VAT credit.
| Category | Examples | Tax treatment |
|---|---|---|
| Long-term fixed assets | Camera, lighting, backdrop system, safety props | Depreciated if over 1,000,000 KRW |
| Consumables | Treats/toys, cleaning supplies, shoot props | Expensed in full immediately upon purchase |
| Personal services | Animal handler, assistant shoot staff | 3.3% withholding, filed by the 10th of the following month |
| Outsourced goods production | Frames, calendars, photo books | Expensed immediately; input VAT credit available |