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.
References:
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)
