(1) The tax base for value-added tax on a supply of goods or services shall be the total value of all supplies of goods or services provided during the relevant taxable period.
(2) The tax base for value-added tax on the importation of goods shall be the sum of the taxable value for customs duties and the customs duties, individual consumption tax, liquor tax, education tax, special rural development tax, and traffic, energy and environment tax on such goods.
(3) The value of supply referred to in paragraph (1) means each of the following. In such cases, it shall include payments, rates, fees, or all other things of value, whatever their names are, which are provided by recipients of goods or services, but exclude value-added taxes: <Amended on Dec. 19, 2017>
1. Where payments are made in money: The payments: Provided, That when payments are made in any foreign currency or other foreign exchange, they mean the value converted in the manner prescribed by Presidential Decree;
2. Where payments other than money are made: The market price of goods or services supplied by the supplier himself or herself;
3. Where a business is closed: The market price of goods in stock at the time of closing the business;
4. Where goods or services are deemed to be supplied under Articles 10 (1), (2), (4) and (5) and 12 (1): The market price of the goods or services supplied by the supplier himself or herself;
5. Where goods are deemed to be supplied under Article 10 (3): The value prescribed by Presidential Decree based on the acquisition value, etc. of the goods;
6. Where goods or services are supplied through credit sales, installment sales, or sales in which payments are settled wholly or partly with mileage, etc. prescribed by Presidential Decree: The value prescribed by Presidential Decree based on the types, etc. of supply.
(4) Notwithstanding paragraph (3), if the supply of goods or services to a related person (including goods or services relating to trust property provided by a trustee to a related person of a trustor) falls under any of the following cases and if it is deemed likely to unreasonably reduce tax burden, the market price of the supplied goods or services shall be deemed the value of supply thereof: <Amended on Dec. 8, 2021>
1. Where payments for a supply of goods are unreasonably low or no payments therefor are made;
2. Where payments for a supply of services are unreasonably low;
3. Where no payment is made for a supply of services and the proviso of Article 12 (2) is applicable.
(5) None of the following amounts shall be included in the value of supply:
1. The amount of discount made directly on the normal price of goods or services based on their quality, quantity, conditions of delivery, methods of making payments for supply, and other conditions of supply, at the time of supply thereof;
2. The value of returned goods;
3. The value of goods, which are broken, damaged, or lost before they reach a person to whom they are supplied;
4. National subsidies and public subsidies not directly related to the supply of goods or services;
5. Overdue interests received due to a delay in payments for supply;
6. The amount of discount by an entrepreneur from the original value of supply on grounds of receiving payments for supply in advance of the agreed date.
(6) Neither an incentive and other amount similar thereto that an entrepreneur pays to a person to whom goods or services are supplied nor a bad debt amount under Article 45 (1) shall be deducted from the tax base.
(7) Where it is unclear whether payments for goods or services supplied by an entrepreneur include value-added taxes, an amount calculated by multiplying the payments by 100/110 shall be the value of supply.
(8) Where a business operator supplies goods commonly used for a taxable business, a tax-free business, etc., the amount calculated as prescribed by Presidential Decree shall be the supply value. <Amended on Dec. 31, 2023>
(9) Where an entrepreneur supplies land with buildings, structures, etc. standing thereon, the actual transaction price of such buildings, structures, etc. shall be the value of supply: Provided, That in any of the following cases, the value of supply shall be the amount calculated on a pro rata basis as prescribed by Presidential Decree: <Amended on Dec. 31, 2018; Dec. 8, 2021>
1. Where the distinction between the price of land and the price of any building, structure, etc. in the actual transaction price is unclear;
2. Where a difference of at least 30/100 exists between the price of any land, building, structure, etc. an entrepreneur has determined based on the actual transaction price and the amount calculated on a pro rata basis as prescribed by Presidential Decree: Provided, That excluded herefrom are cases falling under the grounds prescribed by Presidential Decree such as where the price is differentiated as prescribed by other statutes or regulations.
(10) Where an entrepreneur leases any of the following real estate, the value of supply shall be an amount calculated according to the formula prescribed by Presidential Decree:
1. Where he or she receives security money for lease on a deposit basis or for lease in return for the lease of the real estate;
2. Where he or she provides a taxable real estate lease along with a tax-free housing lease and so the distinction between the leases or between the rents is unclear;
3. Where he or she leases real estate over at least two taxable periods on conditions of receiving the rents in advance or later.
(11) Where any goods deemed a supply of goods under Article 10 (1), (2), and (4) through (6) constitute a depreciable asset prescribed by Presidential Decree (hereinafter referred to as "depreciable asset"), an amount calculated according to the formula prescribed by Presidential Decree shall be the value of supply, notwithstanding paragraph (3) 3 and 4.
(12) Matters necessary for calculating market prices and other values of supply and tax bases shall be prescribed by Presidential Decree.