LogoLogo
  • 🧩i'mport Payment Integration Docs
    • 🚗GET STARTED
  • 🛫Setup
    • 🖥️1. Create an account
    • 🧷2. Set up PG
      • 🏢Payment gateway settings
        • ⌨️NHN KCP
        • ⌨️KG INICIS
        • ⌨️NICE Payments
        • ⌨️Toss Payments
        • ⌨️KICC
        • ⌨️Paymentwall
        • ⌨️Daou
        • ⌨️다날 설정
        • ⌨️JTNET 설정
        • ⌨️세틀뱅크 설정
        • ⌨️KG모빌리언스 설정
        • ⌨️스마트로 설정
        • ⌨️페이팔 설정
        • ⌨️엑심베이 설정
        • ⌨️블루월넛 설정
      • ⛺간편 결제사
        • ⌨️카카오페이 설정
        • ⌨️토스간편결제 설정
        • ⌨️네이버페이(결제형) 설정
        • ⌨️페이코 설정
        • ⌨️차이 설정
        • ⌨️알리페이 설정
    • ✔️3. Check required info
  • Payment window
    • 🖥️Authenticated payment
      • 📒Definition
      • 🌠1. Add i'mport library
      • 💡2. Initialize IMP object
      • 🪧3. Request payment
      • 🎁4. Process payment result
        • 🪟Iframe method
        • 🖼️Redirect method
      • 🔦5. Verify payment information
      • 🛬6. Complete payment
    • ⏰Non-authenticated payment
      • 🏍️Request billing key payment
        • 🖱️REST API
        • 🛡️PG window
      • 💳Key-in payment using card info
      • 🪧Subscription payment using billing key
    • 💸Payment cancellation (refund)
      • 💷Virtual account refund
  • Payment result
    • ⚒️Set up a webhook
  • Other Services
    • 📱Mobile identity verification
      • 📔1. Prepare for verification
      • 🥏2. Request verification
      • 🚚3. Send verification result
      • 🤹4. Get verification info
    • 🚚Integrated identity verification
      • 📒Prepare for verification
      • 🥏Request verification
      • 🚚Send verification result
      • 🤹Get verification info
    • 💳Credit card identity verification
      • 📒1. Prepare for verification
      • 🥏2. Request verification
      • 🚚3. Send verification result
      • 🤹4. Get verification info
    • 💻Generate payment URL
    • 🛩️Integrate budget handler
    • 📟Native mobile SDKs
  • TIPS
    • 🌽Tax exemption on payments
    • ✅Service launch checklist
    • 🔏Confirm Process
    • 🎼i'mport payment flow
    • 🎈Agency & Tier
    • 📦Billing key issuance by PG
    • 🏦Bank codes by PG
    • 🧾PG codes
    • 🚚Courier codes
    • 🪧What is redirection?
    • 📰PG error codes
  • Admin console
    • 🎡Admin console guide
      • Apply for online payment
      • My ID & API keys
      • Manage admin & sub-merchant accounts
      • Integrate payment
      • Payment activity
    • 💻Integrating Multiple PGs
  • API
    • 📋i'mport API overview
    • 🖇️REST API Access Token
    • 💳Payment API
      • ⌨️Cancel payment API
      • ⌨️Get payment API
      • ⌨️Get payments API
      • ⌨️Get payments by status API
      • ⌨️Get payments by order ID, status (All)
      • ⌨️Get payments by order ID, status (Top 1)
      • ⌨️Get balance API (for split payment transaction)
      • ⌨️Get payments by billing key API
      • ⌨️Save payment amount API
      • ⌨️Update payment amount API
      • ⌨️Get payment amount API
    • 📝Billing key API
      • ⌨️Request billing key API
      • ⌨️Delete billing key API
      • ⌨️Get billing key API
      • ⌨️Get billing keys API
      • ⌨️Get scheduled payments API
    • 🧭Subscription payment API
      • ⌨️Schedule payment API
      • ⌨️Cancel scheduled payment API
      • ⌨️Get scheduled payments API
      • ⌨️Get scheduled payment API
      • ⌨️Get scheduled payments by billing key API
    • 🪂Non-authenticated payment API
      • ⌨️Request non-authenticated payment (billing key) API
      • ⌨️Request non-authenticated payment (one-time) API
    • 🇺🇲🇺🇲 Overseas PG API
      • ⌨️Paymentwall delivery API
    • 👮‍♂️👮♂ Identity verification API
      • ⌨️Get identity verification result API
      • ⌨️Delete identity verification API
      • ⌨️Request identity verification API
      • ⌨️Confirm identity verification API
    • 🎫Simple payment service API
      • 🧽Kakao Pay
        • ⌨️Get order API
      • 🛩️KCP Quick Pay
        • ⌨️Delete user API
      • 🧰PAYCO
        • ⌨️Update order status API
      • 📗Naver Pay
        • ⌨️Confirm escrow order API
        • ⌨️Accrue points API
        • ⌨️Get cash receipt amount API
    • 🏦Escrow API
      • ⌨️Get delivery info API
      • ⌨️Add delivery info API
      • ⌨️Update delivery info API
    • 💵Cash receipt API
      • ⌨️Cancel cash receipt transaction API
      • ⌨️Get cash receipt API
      • ⌨️Request cash receipt API
      • ⌨️Cancel cash receipt (external) API
      • ⌨️Get cash receipt (external) API
      • ⌨️Request cash receipt (external) API
    • 🏛️Virtual account API
      • ⌨️Request virtual account API
      • ⌨️Cancel virtual account API
      • ⌨️Update virtual account API
      • ⌨️Get account holder API
    • 🍶Miscellaneous API
      • 🎽Benepia point
        • ⌨️Get points API
        • ⌨️Request point payment API
      • 🏪Convenience store payment
        • ⌨️Request barcode API
        • ⌨️Cancel barcode API
      • 🗃️Financial institution codes
        • ⌨️Get credit card codes (All) API
        • ⌨️Get credit card name API
        • ⌨️Get bank codes (All) API
        • ⌨️Get bank name API
      • 🛖PG information
        • ⌨️Get PG MIDs API
  • SDK
    • 📚Javascript SDK
      • 💿Payment request parameters
      • 📀Payment response parameters
      • 💿Identity verification request parameters
      • 📀Identity verification response parameters
      • ✏️SDK Release Notes
  • FAQ
    • ⁉️FAQ
  • 🔑Payment integration by PG
    • 🏢Payment gateways
      • ⌨️NHH KCP
      • ⌨️KG INICIS
      • ⌨️Toss Payments
      • ⌨️NICE Payments
      • ⌨️KICC
      • ⌨️Daou (PAYJOA)
        • 📍Precautions for using PAYJOA
      • ⌨️KG Mobilians
      • ⌨️Paymentwall
      • ⌨️Danal
      • ⌨️Settlebank
      • ⌨️JTNET
      • ⌨️Smartro
      • ⌨️PayPal
      • ⌨️Eximbay
      • ⌨️Blue Walnut
    • ⛺Simple payments
      • ⌨️Naver Pay (Standard)
      • ⌨️Kakao Pay
      • ⌨️PAYCO
      • ⌨️Alipay
      • ⌨️Toss
  • Korean Integration Docs
Powered by GitBook
On this page
  • Getting Tax-free Merchant ID through PG Contract
  • Applying tax_free setting
  • CASE 01. Purchasing only tax-free items
  • CASE 02. Purchasing only taxable items
  • CASE 03. Purchasing both tax-free and taxable items
  1. TIPS

Tax exemption on payments

Learn how to set the tax-free amount when requesting a payment.

PreviousNative mobile SDKsNextService launch checklist

Last updated 2 years ago

This guide is intended for businesses who sell tax-free products and services as stipulated in .

If you are a general business that does not sell the goods or services specified in this article, you may skip this guide. A 10% VAT is automatically applied through the PG or credit card company for such businesses.

Getting Tax-free Merchant ID through PG Contract

If you are a tax-free business, you can submit a business registration card to prove your tax-exempt status when signing a PG contract. You will receive a merchant ID that allows you to set the following tax-free related properties when requesting a payment using IMP.request_pay.

  • amount: total payment amount

  • tax_free: tax free amount

Some PGs use a single merchant ID, without getting a separate tax-free merchant ID, for both taxable and tax-free amounts. They set the tax_free property to indicate the tax-free portion of the order.

Merchant ID

The name of the merchant ID issued after applying for and signing a PG contract varies by PG. For example, the merchant ID for KG INICIS is Merchant ID (MID), Kakao Pay is Member Code (CID), and Naver Pay is Partner ID.

Three types of merchant IDs can be issued according to your business's tax-exempt status.

Tax-free merchant ID

A tax-free merchant ID is issued to businesses that only sell tax-free products and services. If you make a transaction with a tax-free merchant ID, all payments are tax exempted regardless of the tax-free setting.

Taxable merchant ID

A taxable merchant ID is issued to businesses that only sell taxable products and services. If you make a transaction with a taxable merchant ID, all payments are taxed regardless of the tax-free setting.

Combination merchant ID

A combination merchant ID is issued to businesses that sell both taxable and tax-free products and services. You must use a combination merchant ID to set the tax-free amount for only the tax-free items.

To pay for both taxable and tax-free items, specify the total payment amount for all items in the amount property, and the total tax-free amount for only tax-free items in the tax_free property.

tax_free is required

For transactions using combination merchant ID, you must set both the amount and tax_free properties. If the tax_free value is missing, an error may occur when you attempt to open the payment page for some PGs.

Note that KG Inicis processes all payments as tax-free; if you change to a combination merchant ID while using a taxable merchant ID, all previous taxed payments are converted to tax-free payments.

Applying tax_free setting

The scenarios in this section show how to set the amount and tax_free properties when purchasing tax-free and/or taxable items.

Assume that a flower business (tax-free business) sells tax-free plant seedlings and taxable vases as follows:

  • Plant seedlings: tax-free, 11,000 won each

  • Vase: subject to VAT, 22,000 won each

CASE 01. Purchasing only tax-free items

For a purchase of one seedling, set the total payment amount to 11,000 won, and the total tax-free amount to 11,000 won as follows:

JavaScript
  IMP.request_pay({
    amount: 11000,   // total payment amount
    tax_free: 11000,  // total tax-free amount
    ...
  }, function (rsp) {
    ...
  });

In this case, the total amount of 11,000 won is tax-free, and the final payment is calculated as follows (terminology may vary by PG):

  • Total tax-free amount: 11,000 won

  • VAT: 0 won

CASE 02. Purchasing only taxable items

For a purchase of one vase, set the total payment amount to 22,000 won, and the total tax-free amount to 0 won as follows:

JavaScript
  IMP.request_pay({
    amount: 22000,   // total payment amount
    tax_free: 0,  // total tax-free amount
    ...
  }, function (rsp) {
    ...
  });

In this case, a 10% VAT is applied to the total amount of 22,000 won, and the final payment is calculated as follows:

  • Total item price: 20,000 won

  • VAT: 2,000 won

CASE 03. Purchasing both tax-free and taxable items

For a purchase of 3 seedlings and 1 vase, set the total payment amount to 55,000 (33,000 + 22,000) won, and the total tax-free amount to 33,000 won (for seedlings) as follows:

JavaScript
  IMP.request_pay({
    amount: 55000,   // total payment amount
    tax_free: 33000,  // total tax-free amount
    ...
  }, function (rsp) {
    ...
  });

In this case, a 10% VAT is applied to the total taxable amount of 22,000 won, and the final payment is calculated as follows:

  • Total item price: 20,000 won

  • Total tax-free amount: 33,000 won

  • VAT: 2,000 won

🌽
Article 26 of the VAT Act (Supply of Tax-Free Goods or Services)