VAT-Exempt Businesses Must Report Revenue by the 13th of Next Month

by Ju Sangdon

Published 16 Jan.2024 12:00(KST)

Updated 16 Jan.2024 14:23(KST)

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National Tax Service to Send Notification Letters via Mobile Starting from the 18th

Individual business owners engaged in VAT-exempt businesses in 2023, such as clinics and hospitals, private academies, residential rental businesses, private tutors, and golf course caddies, must report their business status, including income by industry, by the 13th of next month.

On the 16th, the National Tax Service (NTS) announced that it will send business status report guidance for the 2023 tax year via mobile to 1.52 million VAT-exempt business operators starting from the 18th.

Reports can be submitted without visiting the tax office by using Hometax (PC), Sontax (mobile app), or ARS phone service.

VAT-Exempt Businesses Must Report Revenue by the 13th of Next Month

The NTS provides reporting assistance materials through Hometax and Sontax, including electronic (tax) invoice, credit card, and cash receipt sales details and purchase data. This year, reporting support has been expanded with services such as pre-filled income amounts for caddies and the introduction of an ARS no-activity reporting system.

Additionally, to support caddies who have limited experience in filing comprehensive income tax returns, the NTS guides them on business status reporting and provides a pre-filled income amount service linked in real-time with service provision data submitted by golf course operators. For taxpayers with no income in 2023, a system has been developed to allow easy reporting with just one ARS phone call.

Residential rental business operators must check the revised regulations applicable from the 2023 tax year before filing. The standard for high-priced housing has been raised to a standard market price exceeding 1.2 billion KRW, and the interest rate applied when calculating deemed rent on rental deposits has been adjusted to 2.9% per annum.