Vehicle VAT Deduction Checker
Is this car a tax-saving machine or a luxury expense?
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The Golden Rule
In the Korean tax system, "Small Passenger Vehicles" are generally excluded from VAT deduction to prevent luxury spending disguised as business expenses. However, there are significant exceptions built to support small businesses.
Deduction is possible for light cars (≤1000cc) and multi-purpose vehicles with 9 or more seats.
Deduction Checklist
Vehicle Purchase
10% of the vehicle price is returned as a VAT refund or deducted from your VAT payable.
Maintenance
All repair costs, engine oil changes, and parts are eligible for VAT deduction.
Fuel Costs
Gasoline, Diesel, or LPG costs used for eligible vehicles are fully deductible with a business card.