Download Invoice for South Korea

To ensure compliance, a VAT-compliant invoice in South Korea, known as an e-Tax Invoice, must adhere to specific requirements. Electronic tax invoices are mandatory for most Business-to-Business (B2B) and Business-to-Government (B2G) transactions, with the mandate extending to individual businesses exceeding KRW 100 million in annual turnover as of July 2023. These invoices must be generated in an XML format and secured with a digital signature using Public Key Infrastructure (PKI). Crucially, an invoice is only considered legally issued once it's transmitted to and accepted by the National Tax Service (NTS), which then generates a unique 24-digit Approval Number. Mandatory fields include the supplier's name and business registration number, the buyer's tax number (or equivalent), the value of the supply, the proper VAT breakdown at the standard 10% rate, and the date of preparation.

Acquiring a South Korean VAT-compliant invoice involves utilizing approved electronic systems. Since e-Tax invoices must be in XML format, direct "downloading" often refers to generating or accessing these digital documents through designated platforms.

• Utilize the NTS HomeTax Portal: The primary method is through the free government portal, esero.go.kr, which is integrated into the NTS HomeTax system. This platform allows for direct issuance and automatic transmission to the NTS.
• Employ Certified Service Providers: Alternatively, businesses can use certified Application Service Providers (ASPs) or integrate their existing business accounting systems, provided they have a valid digital certificate.
• Obtain a Digital Certificate: Regardless of the chosen method, a digital signature is mandatory to guarantee the invoice's authenticity and integrity. This certificate can be obtained from a certifiable authority or the NTS itself.
• Ensure NTS Transmission: The critical step for compliance is the transmission of the e-Tax invoice to the NTS system, which validates the transaction and issues an approval number.

Navigating South Korea's e-Tax Invoice system requires attention to detail to avoid penalties. A common pitfall relates to transmission timelines for e-Tax invoices. Generally, an invoice must be transmitted to the NTS within one day of its issuance. While monthly summary submissions by the 10th of the following month are sometimes accepted, adhering to the daily transmission is safer.

Another crucial aspect is the retention of tax invoices and supporting documents. Businesses are legally required to archive issued electronic invoices for a minimum of five years. For international transactions, it's important to note that the e-invoicing mandate primarily applies to domestic transactions. For B2B sales to VAT-registered South Korean businesses, the reverse charge mechanism typically applies, where the buyer is responsible for accounting for the VAT. Exports and certain international services may qualify for zero-rated VAT. Non-compliance, such as late transmission or non-issuance, can result in penalties ranging from 0.3% to 2% of the supply value.