Payment

How can I update my payments bank account?

Unfortunately, there’s no direct way for self-update of your bank account. However, you can just contact us via email ([e-mail]) with the new bank account information for the next payments. It is very quick and convenient way to contact us for any requests.

How can I change my company information?

Unfortunately, there’s no way of updating the company information by yourself. However, our staff can update it instead of you when you send us the request email to [e-mail] with the new company information. When you contact us, please attach any official documents for the new company information.

What the TIN means? How can I do when I don’t have a TIN code?

TIN means Taxpayer Identification Number. You can find more detail on this page. ; https://en.wikipedia.org/wiki/Taxpayer_Identification_Number. Also, you can obtain an official information for the TIN from your national tax departments. If you don’t have it right now, you can fill the field with 13 nines. (e.g. 9999999999999). The system moves on the next phase without it. However, it is recommended to update it in the near future.

How can be the VAT determined?

The total VAT amount can be determined as 10% of the Amount subject to settlement. ONE store pays the VAT to the Korean’s National Tax Service instead of the international sellers because it’s very difficult to pay it by themselves. It is automatically deducted from the payments for sellers. You can check it on your monthly settlement statements.

What if there was a failure of the payment because of the wrong bank account number?

If your bank account number was identified as a wrong number, the banks keep the payments temporally. If such a situation happened, ONE store can request sellers to update it to another one. (see FAQ 1-1). Once the new bank information updated, ONE store can retry the payment. In this case, the return and retrial fees can be deducted from the original amount.

The received payment amount is different from the invoice. Are there any reasons for that?

ONE store pays the sending fees for the international payment transactions. However, some banks charge additional fees to the receivers. We've found some cases that there are more than one banks exist for one international payment request. ONE store pays the first sending fees to the first banks, however, we cannot pay the next transaction fees to the second banks. Please understand such complicated situations.

Application of VAT

'The discounted amount from the coupon, points, and carrier membership will not be appiled to the final VAT amount calculation since Onestore's new rule of the fee calculation method which is influenced by the Korean VAT law change.

ㆍ Legal basis: It is based on the new Korean VAT law. (judicial precedent of Gmarket case #2014두 298, 23th, Jun, 2016)

Object

Who will be affected from the change?

ㆍ The all developers or sellers who receive the fee invoice from ONEstore.

Does this change influence the tax invoices issued by e-book and cartoon companies with the approval from ONEstore?

ㆍ Nothing changes..

Change of the amount subject to settlement

What does "changed calculation of the amount subject to settlement and service fee", which was put on public notice in October 2018, mean?

ㆍ In order to ensure that developers can file VAT returns by applying revised laws and related rulings, ONEstore introduced the concept of "the amount subject to settlement" and applied it to the "Payment and Financial Report" page.

What is the Amount subject to Settlement?

ㆍ The Amount subject to Settlement is the sales amount net of customer coupon/points/membership,etc. uses.

Based on the VATL revision in February 2017 and the Supreme court ruling related to other open market case, developers have to report in their VAT returns the amount subject to settlement, which is the sales amount net of coupon/point/membership uses, etc.; whereas ONEstore has to do so the service fee amount, minus coupon/point/membership uses, etc.

After this change, how should a developer file VAT returns?

ㆍ Developers have to report the following amounts in their tax returns.

1) Sales VAT amount : VAT included in the amount subject to settlement*

2) Input VAT amount : VAT included in service fee*

*) Amount net of coupon/point/membership uses, etc.

Does this change reduce the payment to developers?

ㆍ The payment to developers remains unchanged.

Sales

Does the sales amount of developers reduce as much as the 'coupon/point/membership uses, etc.' deducted from sales amount?

ㆍ The Amount subject to Settlement refers to the 'supply price', the sum of sales amount and sales tax liability reported on VAT returns. It is different from sales amount recognized under accounting standards as it is governed by different laws.

It is necessary to decide internally, supported by accounting professionals whether sales are recognized on P/L based on sales amount or the amount subject to settlement (the sales amount net of coupon/point/membership uses, etc.).

For reference, the payment made to developers remains unchanged even after the deductions of coupon/points/membership uses, etc..

Can we file sales VAT returns based on sales amount as before?

ㆍ ONEstore issues a tax invoice for service fee net of coupon/points/membership uses, etc. which reduces input tax as much. Nonetheless, if you file sales VAT returns based on the sales amount as before, it will increase tax burden since more amount as much as coupon/points/membership uses is reported for tax.

Thus, you are advised to file VAT based on the changed <Amount subject to Settlement>.

If the deduction of coupon/points/membership uses, etc. exceeds the service fee for relevant sales, is minus (-) tax invoice issued?

ㆍ The amount deducted as much as coupon/points/membership uses, etc. is determined, not in excess of the service fee for relevant sales amount. In other words, for coupon/points/membership uses, etc. in excess of service fee for relevant sales amount, minus (-) tax invoice is not issued.

Service fee

How will ONEstore service fee change?

ㆍ Service fees based on sales are the same as before. The ultimate service fees charged to developers are the aforementioned service fees based on sales, subtracted by coupon/point/membership uses, etc. Based on this service fee amount actually charged to, ONEstore issues a tax invoice.

As coupon/points/membership deductions are done both from a developer's sales amount and from ONEstore service fees based on sales amount, the payment made to developers remains the same.

If coupon/point/membership uses, etc. are subtracted from service fees, will it reduce costs of developers?

ㆍ Like the amount subject to settlement separated from sales amount, service fees are different from developers' costs in terms of concept. It is necessary to decide internally, supported by accounting professionals, whether costs will be recognized, net of coupon/point/membership uses, etc

Settlement

What are coupon/point/membership uses, etc. excluded from the amount subject to settlement?

ㆍ It is the amount paid by customers using ONEstore event discounts (coupon/point) or membership service (T/KT/U+). Even after these deductions from sales amount and service fees, the payment made to developers remains unchanged.

Can I know which App got discounts?

ㆍ You can see the details of coupon/point/membership uses by App on excel downloaded from Payment and Financial Report.

Division of service provider

Are the same deductions apply to ONEstore/KT/LG Uplus?

ㆍ The payment made to developers is the same, but the deduction method differs by service provider (telecommunication service provider). For ONEstore, all the uses of coupon/points/membership are deducted, whereas for KT and LG Uplus, part of coupon/points/membership uses is subtracted.

Overseas

For overseas developers, how does VAT payment by proxy change?

ㆍ Like domestic developers, VAT is paid by proxy, based on the amount net of coupon/point/membership uses, etc. The payment to overseas developers remains the same.

How does the VATL revision influence a related withholding tax?

ㆍ Withholding tax is calculated based on the sales amount net of customer coupon/point/membership uses, etc..

Does the change in the invoice format influence the payment to developer?

ㆍ The payment remains the same as it does for domestic developers.

Rules for VAT calculation for overseas seller

ㆍ The rule for VAT is differ from the carriers of purchasing user, and identically applied for individual purchase transaction.

Below is the example for the VAT calculation that assumes 20% of user payment and 50% of point discount are base of the market fee, which has applied since Jul 1st, 2018. It also shows the case that the point discount is under or over the market fee amount

55KB

(overseas)Rules_for_VAT_calculation_example.xlsx

When the point discount is below the market fee

ㆍ Selling on the ONEstore storefront

Deduction: When the fee based on the price (\2500) is greater than the point discount (\1,100), Onestore deducts the whole amount of point discount from the market fee.

ㆍ Selling on the KT or U+ storefront

Deduction: KT and U+ deduct the sum of the fee based on the price (\500) and it’s VAT (\50). Furthermore, the deduction should not exceed the fee of the point discount including it’s VAT.

When the point discount is exceed the market fee

ㆍ Selling on the ONEstore storefront

Deduction: When the fee based on the price (\5,000) is smaller than the point discount (\6,600), ONEstore deducts the sum of total fee based on the price (\5,000) and it’s VAT (\500).

ㆍ Selling on the KT or U+ storefront

Deduction: When the fee based on the price (\5,000) is smaller than the point discount (\6,600), KT and U+ deduct the sum of the partial fee based on the point discount amount (\3,000) and it’s VAT (\300). Furthermore, the deduction should not exceed the fee of the point discount including it’s VAT.

If you have any further questions or requests, please don’t hesitate and just contact ONEstore developer help center via [e-mail]. In any case, please include your Onestore Developer center’s account ID information. It helps us to find you from our system very quickly. Thank you.