Can't Pay the VAT Interim Notice? Payment Extension, Card Payment, and Preliminary Return (2026 Second Period)

For foreign nationals: some of these rules apply differently depending on whether you are a resident or a non-resident for Korean tax purposes. Check your residency status before relying on this article.

The VAT (부가가치세) interim notice (예정고지) amount is half of the VAT you paid in the first half of the year, and the 2026 second-period payment deadline is Monday, November 2. If your sales dropped sharply in the second half, you can switch to a preliminary return by October 26 and pay only on your actual results. If you are short on cash right now, consider paying by card or applying for a payment extension. If you simply miss the deadline, a 3% penalty is added immediately.

The full filing schedule is in VAT Filing Schedule at a Glance.

How to Check Your VAT Interim Notice Amount

The interim notice system applies to individual general taxpayers and to corporations with a supply value of less than KRW 150 million in the previous tax period. The tax office notifies you in advance of half (50%) of the tax payable for the previous tax period. Check the tax you paid with your July final return, and you can see right away whether the notice amount is correct.

The amount you pay now is subtracted from the second-half (July~December) tax at the January final return. If you paid more than the actual amount, you get the difference back then. No notice is issued in these cases.

Simplified taxpayers
Businesses whose notice amount would be less than KRW 500,000
Businesses that changed from simplified taxpayer to general taxpayer as of the start of the tax period

2026 Second-Period Interim Notice Payment Deadline: November 2

The original deadline is October 25. This year, because the Gaecheonjeol and Hangul Day holidays could delay delivery of notices, the National Tax Service extended the notice payment deadline for individual general taxpayers and small corporations to the end of October. October 31 is a Saturday, so you can pay by Monday, November 2. This applies to this period only, so from the next period, check the deadline against the 25th again.

Date	Who it applies to
October 26 (Mon)	Filing and payment deadline if you file a preliminary return because of a sales drop or an early refund
November 2 (Mon)	Interim notice payment deadline
December 28 (Mon)	Businesses hit by the floods in Andong, Uiseong, Geoje, Tongyeong, and Yeonggwang, and businesses that sell or supply goods or are partners at Homeplus (automatic extension, check on Hometax whether you qualify)

Switching to a Preliminary Return If Your Sales Dropped (One-Third Test)

The notice amount is set from your first-half results, so it can be a heavy burden if your sales dropped sharply in the second half. In the following cases, you can file a preliminary return based on your July~September results instead of paying the notice, and the notice is cancelled when you file.

Your July~September supply value or tax payable is less than one-third of the previous tax period (6 months) because of a business closure or poor business
You want an early refund because of equipment investment, exports, or similar reasons

Unlike the notice payment deadline, the preliminary return deadline is Monday, October 26.

If You Can’t Pay the Interim Notice Amount: Card Payment and Payment Extension

Method	Details	What to check
Card payment	Pay on Hometax (홈택스) or Cardrotax (카드로택스), installments available	Fee of 0.7% for credit cards and 0.4% for debit cards (reduced in December 2025)
Payment extension	Apply on Hometax or at the tax office at least 3 days before the deadline. If approved, you can postpone payment or pay in installments for up to 9 months	You need a reason such as a disaster or theft, a major business loss or risk of bankruptcy, or long-term medical treatment for you or a family member. You may be asked for collateral

Penalties If You Miss the Deadline

VAT has no installment payment system like the one for comprehensive income tax. If you pass the notice deadline without an approved extension, a 3% penalty on the unpaid tax is added immediately, and a late-payment penalty of 0.022% per day is added after that. If you are in a difficult situation, consider card payment or an extension application before the deadline passes.

When you can do it yourself · When to hand it over

You can handle it yourself if

You can pay the notice amount as is, or pay by card.

Better to hand it over if

Your sales fell sharply, and you need to decide whether to switch to a preliminary return.
You are short on cash and need to apply for a payment extension.
You want someone to keep your books through the next final return.

Barun Tax & Accounting handles VAT preliminary and final returns together with bookkeeping for foreign residents and foreign-owned companies. We reply to emails within one business day. contact@barun-tax.com · KakaoTalk · +82-10-2701-6199

Frequently asked questions

How is the VAT interim notice amount determined?

It is 50% of the VAT payable for the previous tax period (January~June). If it is half of the tax you paid with your July final return, the notice is correct.

When is the October 2026 VAT interim notice payment deadline?

The original deadline is October 25. The National Tax Service extended it to the end of October because the holidays could delay delivery of notices, and October 31 is a Saturday, so you can pay by Monday, November 2, 2026. Businesses in flood-damaged areas and businesses that sell or supply goods at Homeplus have an automatic extension to December 28.

My sales dropped. Do I still have to pay the notice amount?

If your July~September supply value or tax payable is less than one-third of the previous tax period (6 months), you can file a preliminary return instead of paying the notice amount. If you file, the notice is cancelled and you pay only the tax calculated on your actual results. The filing deadline is Monday, October 26.

Can I pay the VAT interim notice amount by card?

Yes. You can pay by credit or debit card on Hometax or Cardrotax, and installments are available. The payment agency fee since December 2025 is 0.7% for credit cards and 0.4% for debit cards.

What happens if I can't pay the interim notice amount by the deadline?

A 3% penalty on the unpaid tax is added immediately, and a late-payment penalty of 0.022% per day is added after that. VAT has no installment payment system, so if you have a reason such as a major business loss or a disaster, it is best to apply for a payment extension at least 3 days before the deadline.

This article is general guidance based on Korean tax law as of the date written. It is not tax advice for your specific situation. Please consult us before acting on it.

← All posts