Korea tax guide
Electronic Tax Invoices in Korea for Foreign Businesses
Hometax Guides
Who this guide is for
- Foreign sole proprietors issuing Korean invoices
- Foreign-owned companies
- Freelancers serving business clients
- Businesses receiving questionable invoices
Quick Answer
A Korean VAT tax invoice documents a taxable business-to-business supply and supports output and input VAT reporting. Businesses subject to electronic issuance must use the prescribed electronic process, include required information, issue at the correct time, transmit the data, and correct errors through the proper method.
Key points
- A tax invoice is not the same as an ordinary invoice or receipt.
- The supply date controls timing.
- Required seller, buyer, value, VAT, and date fields matter.
- Cancellation and correction require formal handling.
- False or late invoices can create penalties and denied input VAT.
Detailed explanation
Identify the document required
Before issuing anything, determine whether the transaction requires a VAT tax invoice, card slip, cash receipt, invoice for an exempt supply, or another document.
Capture the supply date
Use contracts, delivery, service completion, progress billing, and advance payments to determine the correct issue timing. Commercial payment terms do not always decide the tax date.
Validate both parties
Check legal name, business registration number, email, value of supply, VAT, and preparation date. Retain the contract and performance evidence behind the invoice.
Correct through the formal route
If price, buyer, supply, cancellation, or return information changes, use the correct amendment reason and dates in Hometax. Keep the original and correction trail together.
Documents you may need
- Business registration certificates
- Contracts and delivery evidence
- Issued and received invoice ledger
- Hometax transmission records
- Payment records
- Correction invoice documentation
Common mistakes
- Issuing only a commercial invoice
- Using the payment date without checking supply timing
- Entering the wrong buyer registration number
- Deleting an error instead of issuing a correction
- Accepting an invoice without a real supply
When should you ask a tax professional?
Ask a qualified tax professional if you have income from several countries, business income, unclear tax residency, treaty questions, missing documents, late filing concerns, or a visa situation that depends on tax records. This site explains general patterns only and cannot review your personal facts.
FAQ
Is a Korean tax invoice the same as a receipt?
No. Tax invoices, card slips, cash receipts, and ordinary invoices have different VAT and evidence functions.
Can I edit an issued electronic tax invoice?
Errors generally require the prescribed correction tax-invoice process rather than silently changing the original.
Does every freelancer issue a tax invoice?
Not always. VAT registration, taxpayer status, exemption, customer, and the supply determine the document.
Official Sources to Verify
Check the tax year, eligibility conditions, and publication date in the official material before applying a rule. A link marked “Service portal” helps you find a service; it does not substantiate a particular rate or entitlement.