South Korea
Asia
How are Giftcards treated for tax purposes in South Korea (VAT, single-purpose / multi-purpose)?
South Korea does not distinguish between single-purpose and multi-purpose Giftcards. Under the Value-Added Tax Act (VATA), VAT (10%) is charged at redemption. The sale of a Giftcard is not treated as a taxable supply.
What special rules apply in South Korea to the sale, issuance, or redemption of Giftcards?
Under the E-Commerce Act and FTC Notice, merchants must clearly state validity, redemption conditions and residual balance rules. If expiry occurs within one year, an extension obligation or refund rule applies.
Is there a legal rule in South Korea on the validity period of Giftcards?
Yes. Under the Act on Consumer Protection in Electronic Commerce (E-Commerce Act) and FTC Notice 2017-10, Giftcards must be valid for at least one year from the issue date. Shorter periods are not permitted.
What consumer rights apply in South Korea for expired Giftcards?
Under FTC Notice 2017-10, Giftcards must be valid for at least one year. After expiry, the consumer may request a refund of the remaining value within three years from the purchase date, less 10%.