Can I just report the settled amount from a platform like Idus as my revenue?
No. In principle, you record the full sale price as revenue and deduct the platform fee separately as a necessary expense, and reporting only the settled amount understates your revenue, which can be caught against the platform's payment records and lead to an amended filing and penalties. Materials purchases over 30,000 KRW require qualifying documentation, and registering as a general taxpayer after business registration lets you get a VAT refund on materials purchases as well, a real advantage for craft designers with heavy materials spending.
Income Structure Features for Craft Designers
Key Necessary Expense Items
Tax Advantages for Craft Designers
Deduct Input VAT on Materials Through Business Registration
Given the heavy materials spending typical of this field, registering as a general taxpayer after business registration lets you recover the VAT paid on materials purchases, lowering your real tax burden.
Consolidate Income Across Multiple Sales Channels
Managing revenue from online shops, flea markets, and one-day classes together gives you an accurate picture of your total revenue and lets you build tax-saving strategies like the Nolan Umbrella Fund.
File Revenue Based on the Full Sale Price
Recording the full sale price as revenue rather than the fee-deducted settlement amount, and deducting the fee as an expense, is essential to avoid a later request for explanation.
The Most Common Mistake in the Field
The most common mistakes are reporting only the fee-deducted settlement amount from a platform as revenue, or omitting cash sales from flea markets. Many designers also fail to keep materials receipts, losing out on expense recognition.