Ready for the 1st Quarter VAT Filing?

For more details, please feel free to reach out at jz@taxjz.com or If you would like a consultation with an English-speaking Consultant/Accountant in Korea, please schedule a call at: Schedule a Call with Jz

Jz Tips!!

Taxpayers are kindly requested to understand the position of the National Tax Service, which is currently facing a significant shortfall in tax revenue and is seeking to identify and penalize those who have been dishonest in their value-added tax filings. Companies that purchase golf club memberships for personal use but claim them for corporate purposes to apply for VAT refunds, especially interior design businesses that omit cash sales, will face substantial tax liabilities if detected.

Are you ready for the first term value-added tax (VAT) provisional declaration of 2024?

It's that time of the year again when 2.31 million individual business owners classified as general taxpayers, along with 170,000 small corporate business owners (with sales under 150 million won in 2023FY), totaling 2.48 million, must heed the call of the National Tax Service. The tax service has dispatched the pre-notification letters, and by April 25th, payment is due. This amount corresponds to half of the confirmed declaration made on January 25th for the second term of 2023.

But here's the twist! If your business performance for the first quarter of 2024 hasn't quite hit the mark, you have the option to declare a lesser amount by April 25th through the provisional declaration. For instance, if your pre-notified tax amount was 3 million won, but after crunching the numbers (sales tax minus purchase tax), you find that you owe only 1 million won, you can file and pay this reduced amount. It's like finding a discount coupon in your tax paperwork!

So, roll up your sleeves, get your calculators out, and may the odds be ever in your favor as you navigate the thrilling world of VAT declarations. Remember, the taxman cometh, but with a little savvy, you can keep him at bay! Good luck, taxpayers! May your deductions be many and your taxable income be little.