2 Understanding Localizations for South Korea

This chapter contains the following topics:

• Section 2.1, "Understanding VAT for South Korea"

• Section 2.2, "South Korea-Specific Setup and Processes"

2.1 Understanding VAT for South Korea

Value-added tax (VAT) is a noncumulative tax that is imposed at each stage of the production and distribution cycle.

Businesses in South Korea are required to submit reports that list transactions involving VAT.

Note: For common VAT processing, please refer to the "Working with Generic VAT Processing" in the JD Edwards EnterpriseOne Applications Tax Processing Implementation Guide.

2.2 South Korea-Specific Setup and Processes

This table lists the country-specific setup and functionality for South Korea.

Setup or Process	Description
User-defined codes (UDCs)	In addition to the standard software UDCs, set up UDCs to work with VAT reporting. See Setting Up UDCs for Reporting for South Korea.
Tax processing	In addition to the standard processes for reporting value-added tax (VAT), to process VAT tax in South Korea, review the overview of South Korean VAT. See Understanding VAT Reports for South Korea.