Under the existing Korean legislation, non-established businesses who make specified digital supplies to Korean consumers must account for Korean VAT on these supplies, and submit periodic VAT returns.
It has recently been announced that the scope of supplies included within this will be extended from 1 July 2019, and the following supplies will now fall under these rules:
- Cloud computing.
- Brokerage services supplied via mobile phone/computer.
Non-established businesses making B2C supplies to Korean consumers should consider whether VAT registration will be required in light of these changes.