SEOUL, Aug. 16 (Korea Bizwire) — South Korean customs agency reviewing the idea of strengthening the tax obligation for the nation’s overseas direct purchase agents.
The Korea Customs Service said Monday that it has outsourced a study on the direction of customs administration in response to changes in the e-commerce environment.
In the request for proposals, the agency asked for a review on how to strengthen the tax obligation for overseas direct purchase agents as well as to ensure their faithful reporting.
Previously, it has been pointed out that when buying agents evade customs duty by abusing the asymmetry of information and reporting lower prices than the actual value of the item purchased, the responsibility and damages were transferred to purchasers with a tax obligation.
To prevent this practice, the agency imposed joint liability for tax on purchase agents back in 2020, clearing the way for them to shoulder the tax burden and to be punished if they evade customs duty.
The outsourcing of the study can be interpreted as a signal that the government intends to further strengthen the tax obligation of purchase agents.
Ashley Song (email@example.com)