Guide to Filing Value-Added Tax (VAT) – POSTYPE Help Center

🌐 This article has been translated from Korean for your convenience. If there is any discrepancy, the Korean version prevails.

Creator businesses (sole proprietorships, corporations) must file value-added tax (VAT) returns.

What VAT is

Unlike withdrawal fees and comprehensive income tax, VAT is a tax charged at a fixed rate on the value newly added at every stage where goods or services are produced or distributed.
In other words, 10% of POSTYPE’s fees is the VAT on the platform usage fee generated from transactions between POSTYPE and the creator. Under the tax law, VAT is ultimately borne by the final consumer. This means creators bear it in transactions between POSTYPE and creators, and readers bear it in transactions between creators and readers. The amount borne by creators is collected by POSTYPE on their behalf and paid to the government, while the amount borne by readers is included in the sale price of posts.

Since VAT is usually 10% of the product price, please keep this in mind when setting your post prices.
Business creator verification is done as a general taxpayer, you can get a VAT refund on the income generated from POSTYPE using the tax invoice issued for POSTYPE’s fees when you file your VAT return.

Simplified taxpayer status applies when your annual revenue is 10,400만원 or less, and even if VAT is calculated, you may be exempt from paying VAT if your annual revenue is under 4,800만원.

Simplified taxpayers file VAT once a year for the full year’s VAT during the 2nd period final return. However, if you change from simplified to general taxpayer status or from general to simplified, you can file VAT according to the taxable period that applies to your taxpayer status.
If you are a VAT-exempt sole proprietor, you are still required to file an annual business status report (사업장현황신고) on your revenue. You must report last year’s revenue to your local tax office by Feb 10 of the following year.

The filing basis is the income for which a withdrawal was requested within the taxable period. For example, for a general business’s 1st period final return, you must file by Jul 25 for income where withdrawals were requested for Jan income (paid in Feb) through Jun income (paid in Jul).
The filing basis is your sales (income). You must report tax on the total income amount for which withdrawals were requested, not on the final paid amount after deducting fees and VAT.
Go to [Points/Revenue] > [My revenue] > [Withdrawal history], select a year, and download your withdrawal history to see everything at a glance.
- For example, if on May 1 you requested withdrawal of 500,000 won in income, you will actually receive the amount on May 10 after deducting the withdrawal fee and VAT (10% of the fee). In this case, the creator’s April income is not the amount deposited, but the full 500,000 won income amount requested for withdrawal.

Please file your VAT return using one of the methods below.

Electronic filing via [National Tax Service Hometax] > [세금신고 (Tax filing)] > [부가가치세 신고 (VAT filing)]
Visit your tax office in person with your ID and supporting documents to file on paper
Ask a certified tax accountant to file on your behalf

Please pay your VAT using one of the methods below. Other payment methods may also be available.

Electronic payment via [National Tax Service Hometax] > [납부・고지・환급 (Payment/Notice/Refund)] > [세금납부 (Tax payment)] > [납부할 세액 조회/납부 (Check/pay tax due)]
Electronic payment via [카드로택스] or [인터넷 지로] > [국세 (National taxes)] > [조회납부 (Check/pay)]
Transfer to the national tax account or virtual account listed on your payment slip, or print the payment slip and pay at a bank in person