Card Sales VAT Credit Calculator

See how much the credit shrinks for your business.

2026 reform — lower rate and abolished preferential cap

The preferential credit rate falls from 1.3% to 1.2%, and the KRW 10 million annual preferential cap is abolished in favor of the KRW 5 million base cap. Businesses with high card sales are hit hardest.

🧾 Annual sales

Enter the supply value excluding VAT.

💳 Card/cash-receipt share

Includes delivery app payments.

Issued amount (VAT-inclusive) 264,000,000원

🏷️ Taxpayer type

The credit rate and annual cap are identical for general and simplified taxpayers (VAT Act art. 46(1) covers both), so switching the type does not change the amounts below. The real difference is that a credit exceeding the payable tax is not refunded, and this tool does not compute the payable tax.

📉 Comparison

Added annual burden from the reform
264,000원
You pay this much more VAT as the credit shrinks.
Before (rate 1.3%)
3,432,000원
Cap 10,000,000원
After (rate 1.2%)
3,168,000원
Cap 5,000,000원

Issued amounts above 416,666,667원 reach the post-reform cap of KRW 5 million.

Basis

  • Scheme — a share of card/cash-receipt sales is credited against VAT payable
  • Rate — 1.3% before, 1.2% after
  • Annual cap — KRW 10M preferential cap abolished; KRW 5M base cap applies
  • Basis — issued amount is the VAT-inclusive supply price
  • Simplified taxpayers — different payable structure; verify separately

※ Pre-passage bill basis. Actual credit varies by industry, taxpayer type, and filing.

Last updated 2026-09-05