As of July 1, 2015 Korean Value Added Tax (“VAT”) applies to supplies of electronic services (including web services and telecommunications services) by a foreign business to an individual (non-business) located in South Korea.

Although Amazon Web Services, Inc. (“AWS”) and AMCS LLC (“AMCS”) are established in the United States, they are registered for South Korean VAT as nonresident taxpayers.

Accordingly, AWS and AMCS are required to charge VAT at 10% on sales of web services and telecommunications services to individual (non-business) South Korean customers. AWS’s online pricing does not include applicable taxes. All VAT collected from customers in South Korea will be paid to the South Korean tax authority. AWS and AMCS are not required to issue tax invoices.

AWS and AMCS are not required to charge VAT to South Korean business customers. To determine if a customer is a business or individual, AWS relies upon your provision of a valid business registration number.

As such, if you are using AWS and/or AMCS services for business purposes and are registered for South Korean VAT, to ensure that you are not charged VAT you must update your payer and each linked account with your business registration number and the address to which the business registration number is registered in the Tax Settings page here.

Provided you have uploaded a valid business registration number, AWS will not apply VAT on future purchases of taxable services under the relevant account.