(1) Where a foreign entrepreneur supplies any of the following services (hereinafter referred to as "electronic services"), through information and communications networks (referring to the information and communications networks defined in Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection; hereafter in this Article the same shall apply), to consumers in the Republic of Korea [excluding where services are supplied for the taxable business or tax-free business of a person whose business has been registered under Article 8 of this Act, Article 168 (1) of the Income Tax Act, or Article 111 (1) of the Corporate Tax Act (hereafter in this Article referred to as "registered entrepreneur") ], by using a mobile communications terminal, computer, or the like, he or she shall file for registration of business by simplified means prescribed by Presidential Decree ("hereinafter referred to as "simplified business registration") within 20 days after commencing the business: <Amended on Dec. 15, 2015; Dec. 31, 2018; Dec. 22, 2020; Dec. 8, 2021>
1. Any game, audio or video file, software, or other services prescribed by Presidential Decree;
2. Services to run advertisements;
3. Cloud computing services defined in subparagraph 3 of Article 2 of the Act on the Development of Cloud Computing and Protection of Its Users;
4. Services to broker goods or services, which are prescribed by Presidential Decree;
5. Any other services prescribed by Presidential Decree, which are similar to those specified in subparagraphs 1 through 4.
(2) Where a foreign entrepreneur supplies any electronic services to consumers in the Republic of Korea through any of the following third persons (including any nonresident or foreign corporation referred to in any of the subparagraphs of Article 52 (1)) (excluding where supply is made for the taxable business or tax-free business of a registered entrepreneur or where special cases concerning a supply of services, etc. by foreign entrepreneurs apply pursuant to Article 53), the third person shall be deemed to supply the electronic services in the Republic of Korea, and the third party shall file for simplified business registration within 20 days after commencing the business: <Amended on Dec. 22, 2020; Dec. 8, 2021>
1. A person who operates an open market or others similar thereto to provide services to enable electronic services transactions through an information and communications network, etc.;
2. A person who acts as an intermediary, etc. in electronic services transactions in a manner that collects the payment from the purchaser and pays it to the seller;
3. A person prescribed by Presidential Decree, who participates in electronic services transactions in a manner similar to subparagraph 1 or 2.
(3) Deleted. <Dec. 22, 2020>
(4) Notwithstanding Article 52, a person who has filed for simplified business registration shall make a return and payment under Article 48 (1) or (2) or 49 according to the method prescribed by Presidential Decree.
(5) No person who has filed for simplified business registration is entitled to any deduction from the output tax amount or the amount of tax payable, other than the input tax amount to be deducted under Articles 38 and 39, in relation to the supply of relevant electronic services.
(6) A person who has filed for simplified business registration shall retain the detailed statement of transactions regarding the supply of electronic services (including the detailed statement of transactions in cases of supplying services to the taxable business or tax-free business of a registered entrepreneur) for five years after the deadline for filing a final return for the taxable period during which the relevant transactions are made. In such cases, the details to be included in the detailed statement of transactions shall be prescribed by Presidential Decree. <Newly Inserted on Dec. 8, 2021>
(7) The Commissioner of the National Tax Service may require any person who has filed for simplified business registration to submit a detailed statement of transactions of electronic services (hereafter in this Article referred to as "detailed statement of transactions of electronic services") prescribed by Ordinance of the Ministry of E and Finance to verify the appropriateness of filing a return on value-added tax. <Newly Inserted on Dec. 8, 2021>
(8) A person who has filed for simplified business registration shall submit a detailed statement of transactions of electronic services to the Commissioner of the National Tax Service within 60 days from the date of receipt of a request under paragraph (7). <Newly Inserted on Dec. 8, 2021>
(9) The Commissioner of the National Tax Service may cancel simplified business registration where a person who has filed for simplified business registration under paragraph (1) or (2) has closed his or her business in the Republic of Korea (including cases prescribed by Presidential Decree as a case of de facto closure of business). <Newly Inserted on Dec. 8, 2021>
(10) Other matters necessary for the place of tax payment of a person who has filed for simplified business registration, the determination as to the time of supply of electronic services, simplified business registration, etc., shall be prescribed by Presidential Decree. <Amended on Dec. 8, 2021>[This Article Newly Inserted on Dec. 23, 2014][Title Amended on Dec. 22, 2020]