Extension of VAT Payment Deadline by 2 Months for Small Business Owners

VAT Returns Must Be Filed by the 25th
Early Refund Payments for Export Companies

9.03 million corporate and individual business owners must file and pay their value-added tax by the 25th of this month. However, small businesses engaged in construction, manufacturing, food service, retail, and lodging industries have their payment deadline extended by two months until March 25th this year.

On the 8th, the National Tax Service announced that to alleviate the financial burden on small construction and manufacturing businesses and small-scale businesses in food service, retail, and lodging industries facing management difficulties due to the complex economic crisis, the payment deadline will be extended by two months (until March 25th) ex officio without requiring taxpayers to apply.

The ex officio extension of the payment deadline applies to small and medium-sized enterprises (about 200,000) engaged in construction and manufacturing, which are directly affected by prolonged high interest rates and the real estate market downturn. Individual business owners (about 1.08 million) in food service, retail, and lodging industries, which are closely related to daily life and experiencing difficulties due to domestic demand slowdown, will also have their payment deadlines extended.

The National Tax Service plans to pay refunds as quickly as possible to support export companies and improve liquidity for small and micro businesses. In particular, for businesses with zero-rated sales subject to a 0% VAT rate instead of 10% during export, those with direct exports only (estimated about 34,000) who file for early refunds by the 20th will receive refunds by the 30th to actively support end-of-month cash needs. Additionally, tax support recipients such as small and micro businesses and innovative companies who file early refunds by the 25th will receive payments by the 2nd of next month, and those filing general refunds will be paid by February 14th.

Tax assistant services for small businesses will also be expanded. Starting from the 12th, small businesses (simplified taxpayers) who find it difficult to receive help from tax agents will be able to prepare their tax returns with simple Q&A through the expanded tax assistant service. Previously, only simplified taxpayers who did not issue tax invoices were eligible, but for this filing, the service will be expanded to all simplified taxpayers regardless of whether they issue tax invoices or not.

This content was produced with the assistance of AI translation services.