E-invoicing model:

RTIR/Clearance

Mandatory file format:

Local XML

B2G requirements:

National Tax Service (NTS)

Archiving requirements:

5 years

E-signature:

Required

Summary

Navigating the global tax compliance landscape successfully is complex and resource-intensive. Every country has a specific and constantly evolving set of legislated e-invoicing requirements.

Non-compliance, intentional or not, can result in significant financial penalties, business disruption, and reputational damage.

Compliance is complicated

Want to learn more about how Tungsten Network makes the process of staying compliant easier?

Updates

04.06.23

  • Country updates
Self-Billing of Invoices allowed as from 1 July 2023 As part of the tax reform proposal for 2023, taxpayers will be able to issue self-billing VAT invoices from 1 July 2023.   Self-billing of invoices will be incorporated into article 71-2 of the South Korean VAT law. The article imposes that buyers can issue invoices for goods and services if the supplier cannot issue an invoice. In this case, the buyer can deduct the input VAT. In the case of supplies of goods or services that are exempt from VAT, self-billing of invoices will not be permitted. 

03.14.23

  • Mandate information
Updated threshold to comply with the electronic tax invoices Korean government introduced an electronic tax invoice system (e-Tax) in 2011, which requires businesses to report e-invoices to the government's platform immediately after issuance. The requirement is being phased out based on businesses' revenue.    As of present, taxpayers whose annual revenue exceeds KRW 200 million are required to report e-invoices to the government platform. Starting from 1st July 2023, the threshold will be lowered to KRW 100 million (ca. USD 75 000)   In accordance with the 2023 tax reform, the threshold for mandatory e-invoices will be lower again from KRW 100 million to KRW 80 million, which will apply to transactions made after July 1, 2024.