Hi all! I am a US citizen that has recently registered as a sole proprietor (개인사업자) and now have a business license. I plan to open a Naver Smart store and Idus shop to sell my handcrafted items. All the income from the Naver Smart store and Idus will go to my IBK business bank account.

I know that anything I sell in Korea will be charged 10% VAT but am having a hard time finding info on how much to charge and how to collect VAT for products that are bought from customers outside of Korea. Is it a flat rate? is it still 10%? does the % change depending on which country the customer resides in? Would maybe using software like Quickbooks Self Employed help calculate and keep track of VAT?

I plan to sell physical and digital items on a Ko-fi shop and just digital items (crochet patterns) for my Etsy shop. Both the Ko-fi and Etsy income will be sent US bank account since I'm using PayPal to receive payment. I have lived in Korea for 4 years I know that all my worldly income will be taxed by the Korean government so I presume I will have to collect and remit VAT on sales from outside of Korea. I have no employer (just a housewife lol) so any income from the online shops my Twitch will be my only source of income.

If anyone knows of any online resources/articles that have more info on this, can speak from experience, or are knowledgeable on Korean VAT that would be very much appreciated! 🙌😊

Sadly I cannot afford to hire an accountant at the moment but I do plan to hire one once I start to make enough income with my business as they can be pretty pricey. However, I want to be able to learn and understand the tax law better before I start listing items in my shop in case I have to start collecting VAT right away.