The Supreme Court of Korea ruled that fresh flower decorations supplied at hotel wedding venues are a provision of services, not a supply of goods, and therefore subject to VAT. The ruling overturned a lower court decision that had treated the decorations as exempt unprocessed agricultural products. As a result, the tax office assessed significant VAT amounts for Josun Hotel & Resort for 2018.
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Asia Business Daily · 4 months ago
South Korea’s National Tax Service has introduced a new filing requirement for VAT‑exempt business owners, including YouTubers, drivers, and delivery riders. All such owners must submit an annual business operation status report by February 10, 2025, and will receive mobile notifications starting on the 21st of the reporting month. The rule expands guidance to one‑person media creators and sets a 24 million won income threshold for certain personal service providers.
Bloomberg Tax · 4 months ago
The South Korean National Tax Service released a press statement outlining new VAT filing and payment deadlines. The main deadlines are Jan. 26 for filing and paying returns for the July–December 2025 period, and March 26 for an extended payment deadline for certain SMEs. Simplified taxpayers and businesses facing financial difficulties also receive automatic or optional extensions.
VatCalc · 1 day ago
Kazakhstan has launched a pre‑filled VAT return system that automatically populates Form 300.00 using data from its Electronic Invoice Information System, taxpayer accounts and customs declarations. The system updates VAT return data on a T+1 basis, requiring VAT credit notifications to have a ‘confirmed’ status. Businesses must ensure accurate and timely submission of invoices and credit adjustments to avoid errors in the pre‑filled returns.
VatCalc · 3 days ago
China has expanded its instant VAT refund scheme for foreign tourists, allowing refunds at the point of sale and simplifying customs checks. From 1 July 2026, customs will conduct random inspections for claims below CNY 10,000, while tourists must validate claims within 28 days of purchase. The reforms aim to boost inbound tourism and consumer spending.
Economic Times · 7 days ago
The Supreme Court dismissed Uttar Pradesh’s attempt to levy a 21% state VAT on natural gas transported from Andhra Pradesh to Uttar Pradesh, ruling the transaction is an interstate sale governed by the Central Sales Tax Act. The decision upheld a 2012 Allahabad High Court judgment that quashed UP’s assessment orders against Reliance Industries, Tata Chemicals and IFFCO. The ruling confirms that gas transported through common pipelines remains an interstate sale even when co‑mingled.
Aviation Jeta · 7 days ago
The Delhi government has lowered the VAT on Aviation Turbine Fuel (ATF) from 25% to 7% for airlines operating in the capital. The reduced rate will apply for an initial six‑month period, providing relief to airlines and passengers amid rising fuel costs.
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Key Takeaways
The Court ruled that they are a provision of services, not a supply of goods, and therefore subject to VAT.
The tax office assessed 97.85881 million won for the first half and 56.6051 million won for the second half of 2018.
They are considered incidental to wedding services and not exempt as unprocessed agricultural products.
They must treat the decorations as part of the wedding service and charge VAT accordingly.
Primary source
Read the full article at Seoul Economic DailyThis summary was published on VATfaqs.com on 24 May 2026. It relates to VAT developments in South Korea. The original source is Seoul Economic Daily.
