Tax Guide for Bicycle & Micromobility Repair | Battery Waste Disposal, Shared-Service Contracts

Q: Do e-scooter and e-bike batteries require special handling when disposed of?

Yes, lithium batteries are classified as hazardous material with fire risk and must be handled separately from regular waste through a specialized disposal company. The disposal fee is recognized as a business-related expense, so keep the disposal company's contract and receipts on file.

Q: How do we issue a tax invoice when we sign a repair contract with a shared-mobility operator?

For a repair-agency contract with an operator like Kakao T Bike, the rule is to issue the tax invoice according to the supply value and settlement cycle specified in the contract. Since it's a B2B arrangement, align the settlement records with your invoicing timing.

Q: How do we expense the cost of parts?

The cost of parts and materials used in a repair is deductible as cost of goods sold or a supplies expense. Receiving a tax invoice when purchasing from a parts supplier also gets you the input VAT credit, so it's more favorable to use suppliers who issue tax invoices rather than pay in cash.

Q: Do we need to withhold on payments made to an outside repair technician too?

Yes, payments to an outside technician contracted per job must be withheld at 3.3% as business income and filed by the 10th of the following month.

Can we just throw away e-scooter batteries like regular waste?

No — lithium batteries are classified as hazardous material with fire risk and must be handled separately from regular waste through a specialized disposal company, and the disposal fee is recognized as a business-related expense, so we recommend keeping the contract and receipts. If you enter a repair-agency agreement with a shared-mobility operator, the tax invoice should, as a rule, be issued according to the supply value and settlement cycle specified in the contract, and receiving a tax invoice when purchasing from a parts supplier also gets you the input VAT credit.

The Trickiest Part — Battery Waste and B2B Repair Contracts

Handling hazardous materials and managing contracts with shared-mobility operators correctly are the key issues unique to electric micromobility

Lithium Batteries Must Go to a Specialized Disposal Company

Lithium batteries in e-scooters and e-bikes are classified as hazardous material with fire risk and must be handled separately from regular waste through a specialized disposal company. The disposal fee is recognized as a business-related expense, so keep the contract and receipts.

Manage Shared-Service Contracts on a B2B Basis

If you enter a repair-agency agreement with a shared-mobility operator, issue the tax invoice according to the supply value and settlement cycle specified in the contract. Aligning settlement records with your invoicing timing helps prevent filing errors.

Income Structure Features of Bicycle & Micromobility Repair

General customer repair revenue and B2B contracts with shared-mobility operators are mixed together

Requires complying with hazardous-material handling rules for electric-mobility batteries

Parts purchases make up a large share of costs, so managing purchase documentation is central

Key Expense Items

Parts and materials costs (cost of goods sold)

Depreciation on repair equipment (wheel-alignment jig, repair stand)

Battery/waste disposal costs

Subcontracted technician labor costs (3.3% withholding)

Must-Know for Bicycle & Micromobility Repair

Split Repair Equipment & Battery Disposal by Category to Save on Taxes

From repair stands to battery disposal fees, categorizing each item correctly is what cuts unnecessary tax

Long-Term Fixed Assets — Equipment Subject to Depreciation

Repair equipment: repair stand, wheel-alignment jig
Diagnostic equipment: e-bike/e-scooter battery diagnostic tool
Store fixtures: parts display racks, POS system

Once a per-unit purchase exceeds KRW 1 million, it's classified as a depreciable asset and must be expensed over its useful life.

Parts & Battery Disposal — Immediate Expense

Tires, chains, brake pads, and other consumable parts, along with specialized battery-disposal costs, are expensed in full at the time of purchase or payment. Because batteries are hazardous material, be sure to keep the disposal company's contract on file.

Personal-Service Costs — Subcontracted Technician Withholding

Payments to an outside technician hired per job for a repair must be withheld at 3.3% as business income and filed by the 10th of the following month.

Shared-Service B2B Contract Management

For repair-agency contracts with shared-mobility operators, manage the settlement cycle and supply value based on the contract, and issue the tax invoice according to the settlement schedule to avoid filing errors.

Category	Typical Examples	Tax Treatment
Long-term fixed assets	Repair stand, wheel-alignment jig, diagnostic tool	Depreciated once over KRW 1M
Parts & battery disposal	Tires/chain/brakes, specialized battery disposal	Fully expensed immediately at cost
Personal service	Outside repair technicians	3.3% withholding, filed by the 10th of next month
Shared-service B2B contracts	Shared-mobility repair agency work	Tax invoice issued per settlement schedule

Frequently Asked Questions

Do e-scooter and e-bike batteries require special handling when disposed of?

How do we issue a tax invoice when we sign a repair contract with a shared-mobility operator?

How do we expense the cost of parts?

Do we need to withhold on payments made to an outside repair technician too?

Check Out Other Specialties

Phone & Electronics Repair Shop

Documenting non-genuine parts purchases, separating manufacturer-authorized repair fees

Auto Repair Shop

Insurer settlement for accident repairs, parts input-VAT credits

Shoe & Bag Repair Shop

Liability for luxury-goods repair, cash receipts for small-ticket high-volume sales

Back to the Repair & Maintenance Tax Hub

Tax Guide for Bicycle & Micromobility Repair Businesses