Purchase agency is a service that purchases on behalf of consumers.
The industry code is 525105 (overseas purchasing agency).
Compared to other industries, it receives many requests for explanation from tax offices, so be sure to keep your receipts and organize your documents thoroughly 👀
💡 How is the revenue of a purchasing agency calculated?
Overall purchase agency sales - Product cost - Shipping fee
= Commission of the purchasing agency
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Here, we see the commission of the purchasing agency as profit.
For example, if a purchasing agency purchases a product for 100,000 KRW and the consumer buys it for 130,000 KRW, including a shipping fee of 10,000 KRW, the revenue of the purchasing agency is 20,000 KRW.
130,000 KRW - 100,000 KRW - 10,000 KRW = 20,000 KRW
As the number of transactions increases, it is cumbersome to calculate them one by one, so most online platforms add columns for item value, shipping fee, and commission of the purchasing agency to the right of the settlement statement Excel file to manage them separately.
Reflecting only the commission (profit) of the purchasing agency as revenue is different from the general VAT reporting method.
Therefore, you must have supporting documents that show that the commission amount was calculated based on actual data.
Refer to the 📎 Purchasing Agency Supporting Document Example Excel file attached below and send it after you have written it. 🙋🏻♀️
As supporting documents, you need to have proof of the item value and shipping fee listed in the Excel file.
E.g., invoices, transfer confirmation, credit card, etc.
💡 What happens if there is insufficient supporting documentation?
If the supporting documents are not properly prepared, it may be regarded as missing revenue as a wholesale and retail business, not a purchasing agency.
Also, you may have to pay additional taxes if you lack purchase receipts, so please prepare them carefully!
Import/Customs/Overseas Purchasing Related Q&A
Do you know about the registration system for purchasing agencies?
Where to send the documents
Email: tax@protax.co.kr
Send it directly via KakaoTalk
Purchase agency is a service that purchases on behalf of consumers.
The industry code is 525105 (overseas purchasing agency).
Compared to other industries, it receives many requests for explanation from tax offices, so be sure to keep your receipts and organize your documents thoroughly 👀
💡 How is the revenue of a purchasing agency calculated?
Overall purchase agency sales - Product cost - Shipping fee
= Commission of the purchasing agency
Here, we see the commission of the purchasing agency as profit.
For example, if a purchasing agency purchases a product for 100,000 KRW and the consumer buys it for 130,000 KRW, including a shipping fee of 10,000 KRW, the revenue of the purchasing agency is 20,000 KRW.
130,000 KRW - 100,000 KRW - 10,000 KRW = 20,000 KRW
As the number of transactions increases, it is cumbersome to calculate them one by one, so most online platforms add columns for item value, shipping fee, and commission of the purchasing agency to the right of the settlement statement Excel file to manage them separately.
Reflecting only the commission (profit) of the purchasing agency as revenue is different from the general VAT reporting method.
Therefore, you must have supporting documents that show that the commission amount was calculated based on actual data.
Refer to the 📎 Purchasing Agency Supporting Document Example Excel file attached below and send it after you have written it. 🙋🏻♀️
As supporting documents, you need to have proof of the item value and shipping fee listed in the Excel file.
E.g., invoices, transfer confirmation, credit card, etc.
💡 What happens if there is insufficient supporting documentation?
If the supporting documents are not properly prepared, it may be regarded as missing revenue as a wholesale and retail business, not a purchasing agency.
Also, you may have to pay additional taxes if you lack purchase receipts, so please prepare them carefully!
Import/Customs/Overseas Purchasing Related Q&A
Do you know about the registration system for purchasing agencies?
Where to send the documents
Email: tax@protax.co.kr
Send it directly via KakaoTalk