S. Korea to impose 10% VAT on global IT giants from July
Updated: 2019-06-19 13:10:21 KST
From next month, South Korea will impose a ten percent value added tax on international IT giants, such as Google, Facebook and YouTube.
This is in accordance with the revision to the VAT Act, which passed the National Assembly late last year.
The revision calls for a ten percent VAT on foreign companies' business-to-consumer digital services, which include online advertisements and cloud computing.
The move is expected to increase the price competitiveness of domestic IT firms and to establish an estimate of how much foreign IT firms are making in South Korea through business-to-consumer transactions.