Can I claim the input tax credit on supplies costs like packaging containers and plastic bags?
Yes, packaging containers and plastic bags are business-related supplies that are fully deductible at the time of purchase, and if you obtain a tax invoice or card receipt, you can also claim the VAT input tax credit. Cooking equipment like fryers and gimbap-rolling worktables is classified as a depreciable asset once a single transaction exceeds 1 million KRW and must be expensed over its useful life — and since delivery makes up such a large share of sales, packaging spending is substantial, so it's important to track every bit of it.
The Most Confusing Part — Cooked-Food Taxability and Delivery Share
Unlike simple processed packaged food, food cooked and sold on the spot is taxable
Cooked, ready-to-eat food is subject to VAT
Simple processed packaged food like packaged kimchi sold at a supermarket is tax-exempt, but gimbap and tteokbokki cooked and sold on the spot at a snack bar are subject to VAT. Taxability depends on the form of sale, so it's important not to confuse the two.
Consolidating multiple delivery app settlements prevents omissions
It's common to run Baemin, Coupang Eats, and Yogiyo simultaneously, and revenue can easily be missed if you don't check and combine settlement details across each platform. Cross-check every platform's settlement statement each month.
Income Structure of Snack Bars & Gimbap Shops
Key Expense Items
Must-Read for Snack Bar & Gimbap Shop Owners
Split Your Cooking Equipment & Packaging Costs by Type to Save on Taxes
From fryers to multi-delivery-app settlements, categorizing each item correctly cuts unnecessary tax
Long-Term Fixed Assets — Depreciable Equipment
Cooking equipment: fryers, gimbap-rolling worktables, tteokbokki cooking counters
Store equipment: packaging display racks, 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.
Ingredients & Packaging — Immediately Deductible
Ingredients like seaweed, pickled radish, ham, and vegetables, and packaging containers and plastic bags, are fully expensed at the time of purchase. Since delivery makes up such a large share of sales, packaging spending is substantial, so track it all.
Personnel Service Costs — Part-Time Wages
Part-time and hourly staff require withholding tax filing (by the 10th of the following month) and a payment statement submission, regardless of hours worked.
Managing Settlements Across Multiple Delivery Apps
Brokerage and payment processing fees from multiple delivery apps are recurring monthly expenses, and you need to consolidate every platform's settlement statement to prevent missing revenue or expenses.
| Category | Examples | Tax Treatment |
|---|---|---|
| Long-term fixed assets | Fryers, worktables, POS system | Depreciate if over 1 million KRW |
| Ingredients & packaging | Seaweed, pickled radish, materials, packaging containers | Fully deductible at purchase |
| Personnel services | Part-time and hourly staff | Withholding tax filing, payment statement submission |
| Delivery app settlements | Multi-app fees | Immediately deductible, consolidate by platform |