(1) Any of the following persons (hereafter in this Article and Articles 53, 53-2, and 60 (1) referred to as "foreign entrepreneur") who receives the supply (including bringing into the Republic of Korea which does not constitute an importation of goods subject to the return and payment of value-added tax with customs duties under Article 50; hereafter the same shall apply in this Article and Article 53) of services or rights (hereafter in this Article and Article 53 referred to as "services, etc.") in the Republic of Korea from any of the following persons (excluding where the services, etc. supplied are delivered to a taxable business, but including where the services, etc. not eligible for the deduction of the input tax amount under Article 39 are supplied) shall collect value-added tax from the person receiving the payment for such services, etc. at the time of making such payment: <Amended on Dec. 22, 2020; Dec. 31, 2023>
1. A nonresident or a foreign corporation that has no domestic place of business under Article 120 of the Income Tax Act or Article 94 of the Corporate Tax Act (hereafter in this Article referred to as "domestic place of business");
2. A nonresident or a foreign corporation that has a domestic place of business (limited to supply of services, etc. with no relation to the domestic place of business of the nonresident or foreign corporation, as prescribed by Presidential Decree).
(2) Any person who collects value-added tax under paragraph (1) shall submit a return on value-added tax payment by proxy, as prescribed by Presidential Decree; and shall pay the value-added tax by applying Articles 48 (2) and 49 (2) mutatis mutandis.
(3) In applying paragraphs (1) and (2), matters necessary for the methods of pro rata calculation and other relevant matters where the actual attribution of the services, etc. supplied is unclear due to the common use of such services, etc. for both a taxable business and a tax-free business, etc. shall be prescribed by Presidential Decree.
(4) The transferee of a business transferred under the main clause of Article 10 (9) 2 (including where it is unclear whether a business is so transferred) may, notwithstanding the main clause of Article 10 (9) 2 and Article 31, collect a value-added tax from the recipient of the transfer price at the time of payment thereof; and may pay it to the head of the tax office having jurisdiction over his or her place of business no later than the 25th day of the month following the month in which the payment date of the transfer price falls, as prescribed by Presidential Decree, by applying Article 49 (2) mutatis mutandis. <Newly Inserted on Jan. 1, 2014; Dec. 20, 2016; Dec. 19, 2017; Dec. 31, 2018>