How is GST a national sales tax
Frequently asked questions about sales tax (VAT) in South Korea
Amazon calculates South Korean sales tax for the provision of cross-border electronic services
South Korean sales tax (VAT) collection on cross-border services will be extended to residents of South Korea on September 1, 2019
The South Korean government has expanded the existing legislation. According to this, foreign companies offering "cross-border services" will now have to levy South Korean sales tax on additional services if they are provided to South Korean residents who are not registered for sales tax. In this context, the Selling on Amazon (Quote / Sell Services) fees, monthly subscription fees, and sponsored ads now fall under Amazon's cross-border services. The extended regulations come into force on September 1, 2019. Unless a seller on Amazon provides their South Korean Trade Register Number (BRN) as evidence that they are registered for sales tax in South Korea, this regulation requires Amazon to charge South Korean sales tax at a standard rate of 10% on the fees for selling on Amazon. This affects sellers based in South Korea. Amazon is taking appropriate measures from September 1, 2019, so that sellers have sufficient preparation time to update their BRN in Seller Central.
South Korean sellers who submit their BRN to Amazon are not charged 10% sales tax on their Amazon Selling Fees. Review the FAQs below about collecting sales tax before a seller has submitted a BRN to Amazon.
To provide your South Korean BRN to Amazon:
- Sign in to Seller Central.
- Select under Settings Seller account information out.
- In the Tax Information section, click VAT ID no..
- click on Add a VAT number.
- Choose from the list of countries Korea, Republic of out.
- Add your 10-digit South Korean BRN: Example: "123-45-67890".
- click on Add number. By doing this, you agree to the tax registration agreement.
For more information or advice on how this new regulation will affect your seller account, please visit the National Tax Services in South Korea website.
I already have a BRN. Can I pass this information on to Amazon right away?
You can save your BRN at any time. To do this, log into your seller account and follow the steps above.
Sellers with a valid VAT number do not have to pay 10% VAT on their selling on Amazon fees.
What are specific examples of Amazon service fees that are charged South Korean sales tax?
From September 1st, Amazon will charge 10% sales tax on fees for selling on Amazon for sellers who have not entered a valid BRN, collect this tax and pay it. Fees for selling on Amazon subject to the new sales tax rules:
- Percentage sales fees
- Monthly subscription fees
- Advertising fees
How do I get a South Korean BRN?
You can register for a South Korean BRN online by visiting the National Tax Services page or by contacting your tax and legal advisor.
Please note that we will charge you sales tax unless you are registered for sales tax in South Korea and have given us your BRN.
How is South Korean sales tax calculated?
Amazon charges all sellers in South Korea a standard rate of 10% sales tax on their fees for selling on Amazon if a valid South Korean BRN has not been provided as proof that the seller is registered for sales tax.
Amazon will begin calculating and collecting South Korean sales tax on fees for selling on Amazon on September 1, 2019.
Does the South Korean sales tax rule apply to both the professional and the individual seller tariffs?
Yes, even if the list of services for the professional and individual provider sales tariffs may be different, the ESS rule applies to accounts in the professional sales tariff as well as to accounts in the individual supplier sales tariff. Therefore, Amazon has to charge 10% sales tax in every case in which no BRN is given.
Will Amazon notify me regularly if I don't add a BRN in Seller Central?
No, it is the seller's responsibility to review and manage the status of their sales tax information. Amazon publishes general announcements for sellers in Seller Central, but does not inform them individually that Amazon is legally obliged to charge 10% sales tax on fees for selling on Amazon, unless a BRN is provided.
How often does Amazon charge and collect the 10% sales tax on my sales fees if I don't provide a BRN?
Amazon calculates and collects the 10% sales tax on your Selling on Amazon service fees for each order.
How can I check Seller Central to see if Amazon has collected 10% sales tax?
Tax information areas are displayed on the Order Details page in Seller Central.
Will Amazon provide me with an invoice for any South Korean sales tax calculations incurred for fees for selling on Amazon?
Amazon is not required to issue sales tax invoices under the new South Korean legislation. All monthly activities can be found in the reports by period. You can find these reports at Seller Central > Reports > Payments > Reports by period. Here you can select a transaction report for a specific period.
I no longer reside in South Korea and have updated all of my details with my new address. Can Amazon reimburse me for the South Korean sales tax already collected from my seller account?
Amazon is required to bill and pay South Korean sales tax based on the information in your seller account. At the time the sales tax was calculated, Amazon had sufficient information to link your account to South Korea. Amazon cannot refund South Korean sales tax without providing a valid South Korean BRN.
I am not based in South Korea. Will Amazon charge South Korean sales tax on fees for my account?
If you are not a South Korean resident, your Selling on Amazon fees will not be subject to South Korean sales tax and will not be charged to your seller account. Contact your tax advisor to find out if you have any sales tax obligations in South Korea.
Why is Amazon still collecting South Korean sales tax even though I have provided a valid South Korean BRN?
Amazon does not charge or collect South Korean sales tax if you have provided a valid South Korean BRN as proof that you are registered for sales tax in South Korea.
However, it is possible that there was an overlap in time and therefore sales tax was levied on your orders. Amazon calculates South Korean sales tax when an order is placed and collects it from the seller's account when the order is shipped. As a result, orders placed before your South Korean BRN was deposited may have been charged South Korean sales tax.
I updated my details with my current residence, which is outside of South Korea. Why is Amazon still charging South Korean sales tax on my account?
Amazon calculates South Korean sales tax on fees at the time an order is placed and collects it when the order is shipped. If the information you provided at the time of shipment suggested that you are a resident of South Korea, South Korean sales tax was charged. This may have happened if you had pending orders before updating your current address and payment information.
Go to Seller Account Information and carefully review each section to ensure that all of your information is complete and correct.
Note that multiple addresses and payment methods can be linked to your seller account.
Can Amazon help me with my tax return?
We are happy to help sellers, but we do not offer tax or legal advice. To do this, please contact your tax advisor.
If you have any further questions, please contact Seller Services through Seller Central. You can contact Amazon's seller service via the contact form:
- Choose Sell on Amazon out.
- click on Other problems and then on Questions about sales tax.
- Enter under What is your question about taxes Your question a.
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