South Korea Value Added Tax (VAT) | Frequently asked questions

Please note: this article has been prepared for informational purposes only. It is not intended to provide, and should not be relied on as, tax advice. For any questions you should consult your own tax and/or legal advisors.

If your business is located in South Korea, learn how HubSpot handles Value Added Tax (VAT) and how you can update HubSpot with your VAT-related information.

What is Value Added Tax (VAT)?

VAT is a tax that is chargeable on most supplies of goods and services consumed in South Korea. 

Why am I being charged VAT?

HubSpot is registered for VAT in South Korea as it supplies electronic services to customers. Therefore, HubSpot is required to charge and collect VAT at the prevailing rate to all customers who are not registered for VAT. 

Which HubSpot services are liable for VAT? 

All HubSpot services are liable for VAT except Professional and Onboarding services. 

How does HubSpot determine which customers South Korean VAT applies to?

If your primary shipping address is in South Korea and you are not VAT registered, then you will be charged South Korean VAT. Learn how to check what your primary company address is set to in HubSpot.

Are there any exemptions under which VAT may not be charged?

If your company is exempt from being charged VAT then you will need to send HubSpot a valid exemption certificate and ensure that your company meets all exemption criteria. Exemption certificates should be sent to billing@hubspot.com for processing.

How do I prove that I am a VAT-registered business customer? 

All businesses must be registered for VAT purposes with the South Korea Tax office and must add this VAT number to their HubSpot billing account. Once a valid VAT number is added to your account, HubSpot will not add a VAT charge to your invoice.

Please note: you may be required to self-account for VAT through the reverse charge mechanism. 

I am VAT registered in South Korea, will I still be charged VAT?

If you have added your valid VAT number to your HubSpot account, your company will not be charged VAT. You may be required to self-account for VAT on the reverse charge basis.

How do I update HubSpot with my VAT information?

• In your HubSpot account, click your account name in the top right corner, then click Account & Billing.
• In the Company Info tab, update your VAT number.

HubSpot cannot retroactively credit or refund VAT from any current or previously issued invoices.