The National Tax Service announced on July 2 that individual and corporate businesses engaged in value-added tax (VAT) must file their first-period VAT returns by July 27, 2026.
The number of businesses required to file has increased to 6.92 million, up from 6.79 million during the same period last year. Individual general taxpayers account for 5.56 million, an increase of 100,000, while corporate taxpayers number 1.36 million, up by 30,000.
Among simplified tax payers, 90,000 who have not issued tax invoices must pay the assessed VAT by July 27. All simplified tax payers who issued tax invoices in the first half of the year must report and pay their results.
However, those among the assessed taxpayers whose sales or tax payments in the first half of the year fall below one-third of the previous tax period may file directly. In this case, the previously assessed VAT will be canceled.
To facilitate taxpayer reporting, the National Tax Service offers pre-filling services through HomeTax and SmartTax. Those with no business activity can easily file through SmartTax or the automated response system (ARS).
Starting with this reporting period, the National Tax Service is expanding its generative artificial intelligence (AI) chatbot consultation service. The service, which was introduced on HomeTax PC in January, will now also be available on the SmartTax mobile platform.
The agency will provide tax relief for businesses struggling due to high exchange rates and fuel prices. A total of 1.026 million taxpayers will receive an automatic two-month extension of the payment deadline to September 28 without needing to apply.
The extension applies to 17,000 businesses affected by high exchange rates, 264,000 young entrepreneurs in the early stages of their startups, 431,000 small business owners with significant revenue declines, and 314,000 simplified tax payers among the assessed and scheduled taxpayers.
Businesses not eligible for the automatic extension can still apply for a deadline extension due to operational difficulties, and the National Tax Service plans to support these requests within the legally defined timeframe.
For export companies and other eligible taxpayers, if they apply for refunds within the reporting deadline and submit the required documents, the National Tax Service will expedite refunds by five days, making them available by August 6, and general refunds will be expedited by 12 days, available by August 14.
Additionally, measures have been implemented to allow businesses affected by delays in payment settlements from WeMakePrice and Interpark Commerce to claim tax deductions for bad debts even before bankruptcy proceedings are concluded.
Businesses that have not received payment for sales on these platforms can claim refunds for VAT already paid through a VAT adjustment request. The National Tax Service will provide assistance through HomeTax reporting support services and individual notifications via mobile.
After the reporting deadline, the National Tax Service will strengthen verification of taxpayers suspected of non-compliance. In particular, it will focus on checking the revenue reporting of shared accommodation businesses, given the increase in demand from foreign tourists.
Key verification cases include using proxy accounts to receive settlement payments from shared accommodation platforms while concealing revenue, claiming input tax refunds on officetels acquired for rental purposes but using them for residential purposes without reporting, and failing to report sales of paper-type local love gift certificates.
* This article has been translated by AI.
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