VAT Return Worksheet

About this template

The worksheet you fill in before the return

Three sheets: ‘Dashboard’ · ‘Input data’ · ‘Usage guide’. It works out the numbers you copy into the filing system, so ‘Input data’ stacks one transaction per row. Eleven columns run No. · Filing period · Date · Type · Client · Business Registration No. · Proof type · Supply value · VAT · Total amount · Notes, with ten sample transactions in rows 2-11.

Pick the period first, then fill in

1. Filing period (column B). H1 preliminary covers January-March, filed by April 25 · H1 final April-June, filed July 25 · H2 preliminary July-September, filed October 25 · H2 final October-December, filed January 25 of the following year.
2. Type (column D) takes Sales or Purchases and nothing else. Summary by type counts these two words with COUNTIF and SUMIF, so anything else falls out of both.
3. Client, Business Registration No. and Proof type — E-tax invoice · Business credit card · Cash receipt · Invoice (tax-exempt).
4. Enter Supply value (column H); VAT and total follow.

How the formulas run

• VAT =ROUND(H2*0.1,0) — 10% of the supply value rounded to the nearest won. Total amount is =H2+I2.
• Summary by type splits output VAT from input VAT. On the sample it reads Sales 4 rows, 4,580,000 and Purchases 6 rows, 1,502,000, so net VAT payable is the difference, 3,078,000. That subtraction is the one step a person does.
• The VAT total on the metric card, 6,082,000, adds output and input together and is not what you pay.

Rows with no VAT, and rows to take out

• Sample row 10, Daon Books, is an Invoice (tax-exempt), so its VAT is 0 — no VAT was charged, so there is none to reclaim.
• Purchases for entertainment, and the purchase or upkeep of passenger cars not used in the business, are non-deductible even when you hold a tax invoice. Leave the VAT in place and your input VAT is overstated: write ‘Non-deductible’ in Notes and take those rows out.
• An individual general taxpayer (KR) is served a notice for half the previous period’s tax instead of filing a preliminary return. In that case leave the preliminary rows empty and fill in the final periods only.

The lower table is updated by hand

‘Net VAT payable by filing period (KRW 10k)’ carries H1 preliminary 84 · H1 final 112 · H2 preliminary 96 · H2 final 138. The four value rows are typed in; only Total 430 and Average 107.5 are formulas. Nothing links it to the transaction rows, so as you close each period, carry the net payable from Summary by type across. Keep all four periods of a year in one file and it doubles as the basis for estimating next year’s preliminary notice.

Watch when the tax invoice is issued

A tax invoice is issued when goods or services are supplied, and where invoices are consolidated for a month, by the 10th of the following month. Miss that and a late-issue penalty applies and the buyer’s input VAT credit is at risk. Date (column C) must be the date of supply, not the date you were paid — book a December supply settled in January by its payment date and the row lands in the wrong period.

What goes wrong

• Merging tax-invoice sales and card sales onto one row. The return reports them in different boxes.
• Putting a VAT-inclusive figure in Supply value. VAT is then charged on top of VAT.
• Filing late. Under-reporting and late-payment penalties both apply, so reconcile the period against the tax office’s e-invoice records before the deadline.
• Leaving Proof type blank. The box you report in depends on it, and you end up asking the supplier all over again.