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

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

Creator businesses (individual businesses, corporations) must file a value-added tax (VAT) return.

What is VAT?

VAT, unlike withdrawal fees and comprehensive income tax, is a tax charged at a fixed rate on the added value newly created at every stage where a product or service is produced or distributed.
In other words, 10% of POSTYPE’s fees is VAT on the platform usage fee generated from transactions between POSTYPE and creators. Under tax law, VAT is ultimately borne by the final consumer. This means that, in transactions between POSTYPE and creators, the creator bears it, and in transactions between the creator and readers, the reader bears it. The amount borne by the creator is collected by POSTYPE on their behalf and paid to the government, and the amount borne by the reader is included in the sales price of the post.

Typically, 10% of the product price becomes VAT, so please take this into account when setting your post price.
If you are verified as a business creator with general taxpayer status, you can receive a VAT refund on income earned through POSTYPE by using the tax invoice issued for POSTYPE’s fees when filing your VAT return.

The criterion for simplified taxpayers is annual sales of 10,400,000 KRW, and even if VAT becomes payable, you may be exempt from paying VAT if your annual sales are less than 4,800,000 KRW.

Simplified taxpayers file VAT once a year for the entire year, during the final filing period for the 2nd period. However, if you change from simplified to general taxpayer status or from general to simplified, you can file VAT based on the taxable period that applies to your taxpayer type.
If you are an exempt individual business that does not file VAT, you are still required to file an annual business status report for your annual revenue. The business status report for last year’s sales must be filed with your local tax office by February 10 of the following year.

The filing standard is income for which a withdrawal has been requested within the taxable period. For example, for the final filing of the 1st period for general businesses, you must file by July 25 for income withdrawn from January (paid in February) through income withdrawn from June (paid in July).
The filing standard is based on your sales (income). You must report tax on the entire amount of income for which a withdrawal was requested as revenue, not on the final amount paid after deducting fees and VAT.
Go to [Points/Income] > [My income] > [Withdrawal history], select the year, and download your withdrawal history to view it at a glance.
- For example, if income of 500,000 KRW is requested for withdrawal on May 1, you will receive the amount on May 10 after deducting the withdrawal fee and VAT (10% of the fee). In this case, the creator’s income for April is not the amount actually deposited, but the full 500,000 KRW that was requested for withdrawal.

Please choose one of the methods below to file your VAT return.

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

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

Electronic payment via [National Tax Service Hometax] > [Payment/Notice/Refund] > [Tax payment] > [Check/pay tax due]
Electronic payment via [CardroTax] or [Internet Giro] > [National tax] > [Inquiry/Payment]
Transfer to the National Tax account or virtual account indicated on your payment slip, or print the payment slip and pay at a bank branch