Not VAT Deductible Purchases for Businesses in Korea

The Korean VAT Laws specify certain purchases are not deducible (10% VAT not refundable) for the companies. For example, VAT payments on following purchases are not refundable:

  • Books, medical expenses, fuels, parking, car maintenance fees, leisure expense such as golf, etc., luxury item purchases, public transportation expenses, tickets (i.e., movies), beauty shops, etc.



Value-added Tax Act Article 39 (Input Tax Amounts Not to Be Deducted) 

Enforcement Decree Of The Value-added Tax Act Article 88 (Tax Deductions Subsequent to Use of Credit Cards) 

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