All corporations (and individual business owners with more than 300M KRW in revenue generated during the previous year) must issue a tax invoice when supplying goods or services, which can be issued through Hometax; a website of the National Tax Service (NTS).
Tax invoices are proof of transactions for goods and services provided by a business. They are the most important documents required for filing your VAT quarterly.
Date of Issuance and Related Penalties
Tax Invoices should be issued at the time of delivery for goods or services. However, if transactions are frequently accrued with the same party, the company is allowed to issue tax invoice(s) by the 10th of the following month. In this case, the transaction(s) on the tax invoice should be dated for the last day of the month being filed.
Example: All transactions accrued during January 1st-30th should be dated for January 31st and the tax invoice must be issued no later than February 10th.
The company must adhere to the time of issuance (Article 34 of the Value Added Tax Act) or be subject to a penalty. For non-issuance or delayed-issuance, penalties of 2% and 1% the price of the good or service will be applied, respectively.
Essential information for issuing Tax Invoice
When you issue the invoice, the following information should be included:
Business Registration Number and Name of the supplier
Business Registration Number of the buyer
Value of goods or services and their VAT
Date of delivery for goods or services
Sample Tax Invoice
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