💡 When is the reduced tax rate applied for travel agencies?
According to the Tourism Promotion Act, if a comprehensive travel agency provides tourism brokerage services to foreign tourists and:
① Receives payment in KRW from foreign exchange banks.
② Receives payment in foreign currency that can be confirmed to have been traded with foreign tourists, then the reduced tax rate is applied. 😊
Please note that the reduced tax rate can only be applied if the transaction details are confirmed by the tourism brokerage fee statement and foreign currency purchase certificate determined by the Commissioner of the National Tax Service, in case of payment in foreign currency.
* You can obtain a foreign currency purchase certificate from each bank.
Also, if you create tour products that combine tourism brokerage services and overseas travel agency services and receive payment at once, it is difficult to distinguish the tourism brokerage fee separately, so the reduced tax rate cannot be applied.
If you receive payment directly in KRW from foreign tourists → Reduced tax rate not applied If foreign tourists pay with personal checks or foreign credit cards → reduced tax rate will apply
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You can scroll the table left and right on mobile. 😃
Article 33-2 (7) of the Enforcement Decree of the Value-Added Tax Act
💡 Is there a separate form for tourism brokerage fee statement?
The National Tax Service has announced the form of the tourism brokerage fee statement as follows.
The statement must specify the amount of tourism brokerage fees received in foreign currency and the amount received in traveler's checks.
If you have prepared a tourism brokerage fee statement or foreign currency purchase certificate, please attach it when filing a VAT report. :)
💡 When is the reduced tax rate applied for travel agencies?
According to the Tourism Promotion Act, if a comprehensive travel agency provides tourism brokerage services to foreign tourists and:
① Receives payment in KRW from foreign exchange banks.
② Receives payment in foreign currency that can be confirmed to have been traded with foreign tourists, then the reduced tax rate is applied. 😊
Please note that the reduced tax rate can only be applied if the transaction details are confirmed by the tourism brokerage fee statement and foreign currency purchase certificate determined by the Commissioner of the National Tax Service, in case of payment in foreign currency.
* You can obtain a foreign currency purchase certificate from each bank.
Also, if you create tour products that combine tourism brokerage services and overseas travel agency services and receive payment at once, it is difficult to distinguish the tourism brokerage fee separately, so the reduced tax rate cannot be applied.
If you receive payment directly in KRW from foreign tourists → Reduced tax rate not applied
If foreign tourists pay with personal checks or foreign credit cards → reduced tax rate will apply
You can scroll the table left and right on mobile. 😃
Article 33-2 (7) of the Enforcement Decree of the Value-Added Tax Act
💡 Is there a separate form for tourism brokerage fee statement?
The National Tax Service has announced the form of the tourism brokerage fee statement as follows.
The statement must specify the amount of tourism brokerage fees received in foreign currency and the amount received in traveler's checks.
If you have prepared a tourism brokerage fee statement or foreign currency purchase certificate, please attach it when filing a VAT report. :)