Expense rules in South Korea.
All NTS rules: 10% VAT, travel allowances and VAT recovery rules in South Korea.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals | 10% | 100% reclaimable | Corporate entertainment limit |
| Travel meals | 10% | 100% reclaimable | Per diem cap |
| Accommodation | 10% | 100% reclaimable | Tax invoice required |
| Fuel | 10% | Limited reclaim | Business records |
| KTX / train / flight | 10% | 100% reclaimable | Public transport |
| Taxi | 10% | 100% reclaimable | Receipt required |
| Client gifts | 10% | Limited | Corporate ent. cap |
| Parking | 10% | 100% reclaimable | Tax invoice |
Tax Invoice
세금계산서 mandatory for ITC.
Cash receipt
Required for ITC <50,000 KRW.
Retention
NTS records: 5 years.
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | KRW 300/km | By company | Standard practice |
| Motorcycle | KRW 150/km | By company | Reduced rate |
MNC practice
Private sector standard.
Covers
Fuel + maintenance.
Records
Date, destination, km.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Seoul | KRW 50,000 | KRW 200,000 | KRW 250,000 |
| Busan / Daegu | KRW 40,000 | KRW 150,000 | KRW 190,000 |
| Senior executive | KRW 80,000 | KRW 350,000 | KRW 430,000 |
| Foreign — Tokyo | KRW 100,000 | KRW 350,000 | KRW 450,000 |
| Foreign — New York | KRW 130,000 | KRW 450,000 | KRW 580,000 |
MNC practice
Standard executive per diem.
Hotel separate
Lodging refunded on invoice.
Tax invoice
세금계산서 for VAT recovery.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Korea → EU | 13th Directive if eligible | Variable | Direct filing per EU country |
| France | Reciprocity | 30 Sept. N+1 | Via impots.gouv.fr |
| United Kingdom | Reciprocity | 31 Dec. N+1 | HMRC VAT65A |
| Switzerland | Reciprocity | 30 June N+1 | FTA Form 1222 |
| USA | No recovery | — | Sales tax not recoverable |
| KR VAT for foreign | Foreign Business Refund | 30 June N+1 | NTS — Form 11 |
Foreign Business Refund
Available if home country offers reciprocity.
Min threshold
Min VAT foreign company.
Typical ROI
% expenses recovered multi-country.
Industrialize your South Korea expenses with Illizeo.
10% VAT, MNC per diem, Tax Invoice 세금계산서, multi-currency KRW↔USD↔EUR↔CHF: all the NTS rules above are natively integrated into Illizeo.
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