VAT (Value Added Tax) is a tax levied on goods and services. The standard rate in Korea is 10%. Consumers bear the cost and businesses remit it to the government.
Supply price is the pre-tax price of the goods/service. Total amount (payable) is supply price plus 10% VAT — the actual amount paid by the customer.
Basic necessities (rice, vegetables, fruit, etc.), medical services, educational services, and financial/insurance products are VAT-exempt. Tax-exempt transactions use a regular invoice instead of a tax invoice.