Timing of exchange rate application for export VAT reporting

Question

Since I do not have many export transactions, I am planning to file my VAT return myself. I need to enter the foreign currency payments received under the "Other Sales" section on Hometax, but I am inquiring about which exchange rate timing I should apply. I received the payment for goods from an overseas company in advance in April and immediately converted it into KRW. However, the shipment took place on July 15, after the VAT reporting period had passed. I heard that the exchange rate should be applied based on the shipment date, but since I received the payment and converted it to KRW immediately, I am confused as to whether it would be more correct to use the amount converted in April as the sales amount.

tflow_expert · Answer

When reporting a zero tax rate for exported goods, the principle is to apply the standard exchange rate as of the shipment date. However, in cases such as this where payment is received and converted into Korean Won before the shipment date, the report should be filed using the actual exchange rate applied.

Timing of exchange rate application for export VAT reporting

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