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Invoicing App for South Korea

Harvest simplifies invoicing with flexible payment options suitable for South Korea. It allows clients to pay invoices via bank transfers and integrates seamlessly with local payment systems.

INVOICE DRAFT

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Item type
Description
Quantity
Unit price
Tax
Amount
Subtotal
$0.00
Discount
$0.00
Amount Due
$0.00
Get paid via:
Credit card / Debit card
ACH
Wire transfer
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Show invoice title

Invoice settings

Tax Add up to 2 tax rates
%
Discount Apply a discount percentage
%

Key Features for South Korean Compliance

Selecting an invoicing app for South Korea primarily hinges on its ability to meet stringent e-invoicing regulations. Businesses with annual revenue exceeding KRW 100 million are mandated to issue electronic tax invoices. These invoices must adhere to a specific XML format defined by the Korean tax authority. A critical compliance feature is real-time reporting to the National Tax Service (NTS), often referred to as a "pre-clearance" model. Invoices should be transmitted to the NTS portal in XML format either immediately after issuance (within the next day) or in batches by the 10th of the following month. Furthermore, a mandatory digital signature, typically using Public Key Infrastructure (PKI), is required to ensure the authenticity and integrity of each invoice.

Integration with Local Payment Methods

For seamless transactions in South Korea, an invoicing app should integrate with the country's preferred local payment methods. Korean consumers exhibit a strong preference for domestic payment options, with over 70% of online transactions processed through local digital wallets. Key integrations to look for include:

  • Local Mobile Payment Apps/Digital Wallets: Support for popular options like Kakao Pay, Naver Pay, Toss, Samsung Pay, and PAYCO is crucial. These are widely used for both online and offline purchases.
  • Direct Bank Transfers (Account-to-Account or A2A): This method remains important for settling invoices, paying bills, and B2B transactions, often facilitated directly through Korean bank applications.
  • QR Code Payments: Increasingly popular in retail and dining, QR code functionality allows for quick and convenient transactions.

Common Pitfalls in Selecting an Invoicing App

Choosing an invoicing app without considering potential pitfalls can lead to significant issues. A major concern is penalties for non-compliance with South Korean e-invoicing regulations. For instance, failing to issue a compliant tax invoice can incur a penalty of 2% of the supply price, while delayed transmission to the NTS can result in a 1% penalty. Buyers also face risks; receiving an invalid invoice may lead to the denial of Input Tax Deductions, effectively increasing their tax burden by the 10% VAT amount. Another critical aspect is archiving requirements: e-tax invoices must be digitally stored for a minimum of five years. Finally, always consult user reviews and ratings to gauge an app's reliability, ease of use, and customer support, ensuring it meets practical operational needs beyond just compliance.

See Your Korean Invoice Template in Action

Preview how your invoice will look with KRW currency, XML reporting for the NTS, and digital signature compliance — ready for South Korean clients.

Invoicing App for South Korea FAQs

  • Harvest allows clients to pay invoices via bank transfers through Stripe, making it easier to handle payments in South Korea.

  • Penalties for non-compliance with South Korean e-invoicing regulations include a 2% fine of the supply price if a compliant tax invoice is not issued, and a 1% penalty for delayed transmission to the National Tax Service (NTS).

  • Harvest allows you to set up multiple tax rates that can be applied to different clients or projects. This flexibility helps you manage invoicing in compliance with varying tax regulations across regions.

  • While invoicing apps can streamline many processes, full automation of compliance with South Korean e-invoicing regulations may require additional tools or manual verification to ensure all legal requirements are met.

  • Key e-invoicing requirements in South Korea include mandatory issuance of electronic tax invoices for businesses with annual revenue over KRW 100 million, real-time reporting to the NTS, adherence to specific XML formats, and the use of digital signatures for authenticity.