Korea tax guide
Korea VAT Preliminary Payment Notices: A Guide for Foreign Business Owners
Hometax Guides
Who this guide is for
- Foreign individual general VAT taxpayers receiving a notice
- Foreign owners checking a small corporation VAT notice
- Business owners comparing a notice payment with a preliminary return
Quick Answer
A Korean VAT preliminary payment notice (예정고지) usually asks an eligible business to prepay VAT rather than submit a preliminary return (예정신고). For the October 2026 cycle, the NTS announced November 2 for notice payments and October 26 for preliminary returns and their payments. Check your notice and any individual extension before acting.
Key points
- A preliminary notice is different from a preliminary return.
- October 2026 notice payment and return deadlines are different.
- Business type and current exception rules determine the correct route.
- Keep proof of payment for the final VAT return.
Detailed explanation
October 2026: two different deadlines
The NTS announcement dated October 5, 2026 distinguishes these dates:
| Action | Announced deadline |
|---|---|
| Preliminary VAT return and associated payment | October 26, 2026 |
| Preliminary notice payment | November 2, 2026 |
These are cycle-specific dates, not a permanent annual calendar. Check your own notice and any applicable relief separately.
Identify what arrived
Look for the tax name, business registration number, period, amount and payment reference. Keep the complete document and record its delivery date. A notice can be a routine advance payment; receiving one does not by itself establish that you failed to file.
Do not confuse VAT with a global income tax or local income tax bill. If the document belongs to another business, or the registration number is wrong, resolve that mismatch before making a payment.
Notice payment versus preliminary return
| Document or route | Practical meaning | Your first check |
|---|---|---|
| Preliminary notice / 예정고지 | Pay an amount assessed in advance | Match the notice to your registration and prior VAT records |
| Preliminary return / 예정신고 | Submit a return for the relevant interim period | Confirm your taxpayer type and filing obligation |
| Final return / 확정신고 | Settle the taxable period | Reconcile prior payments against the final calculation |
The NTS VAT overview describes advance notices for individual general taxpayers and qualifying small corporations, generally based on half the prior six-month period’s VAT liability. Simplified taxpayers follow a different framework. Foreign ownership alone does not identify the VAT category.
If sales fell or you expect an early refund
Do not ignore the notice or replace it with a payment of your own choosing. NTS guidance provides an alternative preliminary-return route in qualifying circumstances involving business deterioration or early refunds. Confirm eligibility, the required period and the submission deadline with current official instructions or your tax representative. Retain proof that any alternative procedure was accepted.
Prepare comparable sales and purchase records rather than relying only on a bank balance. Document which invoices belong to the period and investigate missing entries before asking an adviser to assess your route.
Check the amount online and pay carefully
Sign in to the official Hometax website. The October announcement lists the preliminary-notice lookup under VAT filing and filing-help data. Menu labels may change; search for 예정고지 세액 조회 if needed.
Compare the online amount with the paper or electronic notice. Use official payment instructions and confirm the business identity, tax period and payment reference. Save the confirmation after payment rather than treating an opened payment screen as proof of completion.
For payment navigation, see how to pay Korean tax online. For the broader filing calendar, see Korea VAT filing deadlines.
Keep the final-return credit trail
The NTS explains that preliminary notice tax is credited in the final VAT settlement. Store the notice, payment confirmation and relevant return together, and reconcile the prepaid amount when filing. Investigate discrepancies before submitting rather than assuming every figure was imported correctly.
A useful folder contains the notice, prior final return, current ledger, invoice evidence, payment confirmation and any accepted alternative filing. Name files by business and period so your adviser can trace the calculation.
Before the deadline
Check the current announcement again if your business may qualify for special relief. Confirm the actual status of any extension or alternative filing instead of assuming that another business’s treatment applies. Ask the tax office or a qualified representative when the taxpayer category, amount or procedure remains unclear.
Documents you may need
- VAT notice and delivery date
- Business registration
- Previous final VAT return
- Current sales and purchase records
- Payment confirmation
Common mistakes
- Using the preliminary return deadline for a notice payment without checking the current announcement
- Assuming a VAT notice means an earlier return was missed
- Ignoring the notice because sales fell
- Reducing the payment yourself without completing an eligible alternative procedure
- Forgetting the prepaid credit at final settlement
When should you ask a tax professional?
Ask a qualified tax professional if you have income from several countries, business income, unclear tax residency, treaty questions, missing documents, late filing concerns, or a visa situation that depends on tax records. This site explains general patterns only and cannot review your personal facts.
FAQ
When is the October 2026 VAT preliminary notice payment due?
The NTS October 5 announcement gives November 2, 2026 for preliminary notice payments. Preliminary returns and their payments have an October 26 deadline. Check your notice and any applicable individual extension.
Does a VAT preliminary notice mean I missed a return?
Not necessarily. It can be a scheduled prepayment for an eligible taxpayer. Verify the tax name, period and business registration number.
Can I ignore the notice if business sales fell?
No. Check eligibility and the deadline for a preliminary return instead. Simply paying a smaller amount is not the same procedure.
Is the notice payment lost when I file the final VAT return?
The NTS VAT overview explains that preliminary notice amounts are credited at final settlement. Keep the notice and payment record and reconcile the return.
Does this guide cover simplified VAT taxpayers?
The notice framework described here focuses on individual general taxpayers and qualifying small corporations. Check simplified-taxpayer obligations separately.
Official Sources to Verify
Check the tax year, eligibility conditions, and publication date in the official material before applying a rule. A link marked “Service portal” helps you find a service; it does not substantiate a particular rate or entitlement.