VAT Prepayment Cashflow Calculator

VAT Prepayment Cashflow Calculator helps estimate Korea-related VAT, input tax, refund, or prepayment scenarios in English.

VAT prepayment cash-flow inputs

Prepayment notice

₩4,000,000

Exemption threshold ₩500,000.

Estimated final tax

₩2,850,000

Effective rate 4.1%.

Cash-flow advantage

₩2,575,000

Recommended: voluntary return.

Penalty if delayed

₩126,160

Penalty scenarios use the Korean base and daily late-payment rates.

Runs the Korean individual-business VAT prepayment model with the KRW 500,000 exemption, slowdown test, voluntary return comparison, credit estimates, late-payment penalties, and reserve schedule. This English calculator calls the same pure tax calculation function used by the Korean page. Inputs and labels are translated; the formula is not replaced by a generic value-times-rate stub.

Related calculators

VAT prepayment cash-flow calculator

This English page translates the Korean VAT prepayment cash-flow guide for individual businesses, preserving prepayment exemption, slowdown comparison, voluntary return, penalties, and reserves.

Prepayment notice

Korean VAT prepayment notices are based on the previous finalized tax amount. The model keeps the KRW 500,000 prepayment exemption threshold, so small notices are shown as exempt rather than payable.

The estimated final tax recalculates output VAT, input VAT, card-sales credit, and electronic invoice credit from current-period sales and purchases. Sales can be entered as VAT-included or supply value.

Slowdown and voluntary return

When business activity slows down, a voluntary return can be better than paying the notice. The Korean model uses a one-third slowdown threshold and compares the notice scenario with the voluntary-return scenario.

The cash-flow timeline spreads income, fixed outflows, tax payments, reserve deposits, and ending balance across the year. This helps show whether the prepayment causes a liquidity problem before the final VAT return.

Penalties and reserves

Late payment is simulated with a 3 percent base penalty and 0.022 percent per day. The result includes common delay scenarios so the user can see why paying late to preserve short-term cash is usually expensive.

Reserve recommendations translate estimated quarterly tax into monthly, weekly, and daily amounts. Use this page before ignoring a prepayment notice, filing a voluntary return, or setting a VAT reserve percentage from card sales.