South Korean service invoices use KRW and 10% VAT; Everhour keeps budgeted billing work organized.
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A billable-hours calculation answers three practical questions: how many approved hours are chargeable, what each hour is worth under the agreement, and what total should appear on the invoice. In South Korea, amounts should be stated in KRW, and taxable service invoices generally use the agreed value of supply as the VAT base.
The result matters when you need to review write-downs, split work by role or rate, add VAT, and check the amount the client will see. It also separates billing math from collection timing. For ordinary contracts for work, payment is tied to delivery or due without delay after performance when delivery is not required.
For taxable supplies, South Korea's VAT rate is 10%, applied to the value of supply. A tax invoice must state the value of supply and the VAT amount as separate figures, along with supplier and recipient identifiers, the preparation date, and other prescribed matters. That means the pre-VAT fee is not the same as the client total.
The service timing rule also matters. For VAT timing, the time of supply of services is when the provision of labor is completed, unless special installment or conditional-supply rules apply. Services supplied overseas can qualify for the zero tax rate, but that is a classification rule, not a discount on ordinary domestic taxable services.
Start with approved billable hours, multiply each category by its agreed KRW rate, then add the categories together. For example, a Seoul software advisory project includes 18 approved architect hours at ₩180,000 per hour and 27 approved implementation hours at ₩95,000 per hour.
The pre-tax value of supply is ₩5,805,000: ₩3,240,000 for architect time plus ₩2,565,000 for implementation time. At 10% VAT, the VAT amount is ₩580,500, so the taxable invoice total is ₩6,385,500. If the team worked 50 total hours including non-billable coordination, the pre-tax yield is ₩116,100 per total hour.
A calculator is enough for a single invoice check when the rate, approved hours, VAT treatment, and write-downs are already settled. It gives you the fee, VAT amount, invoice total, and effective hourly yield without building a full billing file. That is enough for a quick quote review or one completed matter.
A managed workflow is better when budgets, recurring work, multiple billing methods, and approval history need to stay visible. Everhour Project Budgeting supports hour-based and money-based budgets, recurring periods, budget alerts, and budget protection, so approved billable work can be monitored before it becomes an invoice problem.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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Multiply each approved billable-hour category by its agreed KRW rate, add the categories to get the value of supply, then apply VAT where the service is taxable. For a general taxable service, South Korea applies 10% VAT to the value of supply, so the tax invoice separates the fee before VAT from the VAT amount.
The listed official sources do not establish a countrywide 6-minute, 15-minute, or other billing increment for professional time. Use the increment in the engagement letter, contract, client policy, or professional billing rules that apply to the work. The safest calculation keeps the chosen increment consistent across time entries and invoice lines.
VAT is added when the professional time is a taxable supply of services by an entrepreneur. South Korea's VAT rules treat services as including labor offered outside an employment relationship, and the output tax is calculated from the sales amount at 10%. Labor under an employment relationship is not treated as a supply of services.
The common mistake is mixing the value of supply and the VAT-inclusive total. If approved time produces ₩5,805,000 in taxable fees, the VAT is ₩580,500 and the client total is ₩6,385,500. Recording only the final total hides the tax base needed for the Korean tax invoice.
For covered subcontract transactions, a principal contractor must pay by the earliest date fixed within 60 days from receipt of the subject matter. For entrusted services, the reference date is completion of the entrusted services. Covered late payments after that deadline carry delayed-payment interest at 15.5% per year under the cited notice.
Everhour Project Budgeting tracks hour-based and money-based budgets as time is logged, with recurring budget periods and email alerts at set thresholds. For Korean client work, that lets you compare approved billable hours against the agreed KRW budget before the invoice is prepared.
Set project budgets before work starts, review approved time against the limit, and use Everhour budget alerts to protect margins before billable hours become invoice pressure.
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