Tax Invoice Korea requirements are one of the most important compliance obligations for businesses operating in the Korean tax system. If a company supplies goods or services subject to Value Added Tax (VAT), issuing a proper tax invoice is not optional—it is a mandatory requirement under the Korean Value Added Tax Act. Foreign entrepreneurs, subsidiaries of overseas companies, and startups entering the Korean market often misunderstand when and how tax invoices must be issued, which can lead to penalties and tax compliance risks.
In Korea, tax invoices serve as official documentation proving that a VAT-taxable transaction has occurred between two businesses. Most tax invoices are issued electronically through the National Tax Service (NTS) system known as Hometax. Businesses that fail to issue or properly transmit tax invoices may face penalties, VAT deduction issues, and administrative sanctions. This guide explains the Tax Invoice Korea system as of 2026, including issuance requirements, deadlines, mandatory information, and practical compliance procedures for foreign-owned companies.
What Is a Tax Invoice in Korea?
A tax invoice in Korea is an official document that proves a taxable supply of goods or services has occurred and that Value Added Tax (VAT) has been included in the transaction.
Under the Korean Value Added Tax Act, a tax invoice must be issued when a VAT-registered business supplies goods or services to another business entity.
Key Characteristics of a Tax Invoice in Korea
| Category | Description |
|---|---|
| Legal Basis | Korean Value Added Tax Act |
| Purpose | Proof of VAT-taxable transaction |
| Issuer | VAT-registered business |
| Recipient | Business customer |
| VAT Requirement | VAT amount must be clearly indicated |
| Standard Format | Electronic tax invoice |
A valid tax invoice confirms the following information:
- Supplier identity
- Buyer identity
- Supply value (amount before VAT)
- VAT amount
- Date of issuance
Because VAT input deductions depend on proper tax invoices, accurate issuance is essential for both parties involved in the transaction.
Who Must Issue Tax Invoices in Korea?
Not every business operating in Korea is required to issue tax invoices. The obligation depends on the type of taxpayer and annual revenue level.
Mandatory Issuers
Businesses required to issue electronic tax invoices in Korea include:
- Corporate entities (corporations)
- Individual businesses whose annual supply value exceeded KRW 80 million in the previous year
These businesses must issue tax invoices electronically through the National Tax Service electronic tax invoice system.
Businesses That May Be Exempt
Certain businesses may not be required to issue tax invoices:
- Simplified taxpayers (간이과세자) below specific thresholds
- VAT-exempt industries such as education and medical services
- Small businesses below the mandatory issuance threshold
However, once the supply amount exceeds the threshold, the electronic tax invoice requirement becomes mandatory.
Tax Invoice Korea Issuance Deadline
One of the most important compliance rules is the issuance deadline.
A tax invoice must be issued no later than the 10th day of the month following the month in which the supply occurred.
Example
| Transaction Date | Tax Invoice Deadline |
|---|---|
| May 15 | June 10 |
| July 31 | August 10 |
| October 3 | November 10 |
If the 10th falls on a weekend or public holiday, the deadline automatically moves to the next business day.
Failure to issue a tax invoice within this deadline may result in penalty taxes (surcharges).
Required Information on a Korean Tax Invoice
A valid Tax Invoice Korea document must contain several mandatory elements defined by the VAT Act.
Mandatory Fields
A Korean tax invoice must include:
- Supplier business registration number
- Supplier name or company name
- Buyer business registration number
- Supply amount (before VAT)
- VAT amount
- Date of issuance
If any of these fields are missing or incorrect, the tax invoice may be considered invalid for VAT input tax deduction purposes.
For international companies operating in Korea, common mistakes include:
- Incorrect buyer business registration number
- Incorrect VAT calculation
- Missing issuance date
These errors may result in denial of VAT deductions during tax audits.
How to Issue a Tax Invoice in Korea
The most common method for issuing a tax invoice in Korea is through the National Tax Service Hometax system.
Step-by-step process:
1. Create a Hometax Account
Visit the National Tax Service portal:
Register and log in.
2. Register a Digital Certificate
Navigate to:
Hometax → Certification Center → Register Certificate
A digital certificate is required for authentication.
3. Navigate to Electronic Tax Invoice Issuance
Menu path:
Hometax → Invoice / Receipt / Card → Electronic Tax Invoice Issuance
Choose:
Electronic Tax Invoice (Single Issuance)
4. Enter Transaction Information
Input:
- supplier information
- buyer information
- supply value
- VAT amount
If the transaction is zero-rated VAT, select the appropriate tax type.
5. Select Payment Status
Two options exist:
| Type | Meaning |
|---|---|
| Receipt (영수) | Payment already received |
| Claim (청구) | Payment not yet received |
After selecting the correct option, submit the invoice.
Penalties for Not Issuing Tax Invoices
Failure to comply with Tax Invoice Korea regulations can lead to penalty taxes.
Common violations include:
- Failure to issue a tax invoice
- Late issuance
- Incorrect information on the invoice
- Failure to transmit invoice data to the National Tax Service
Electronic tax invoices must be transmitted to the National Tax Service by the day following the issuance date.
Failure to transmit the invoice data within this timeframe may result in surcharges under the Korean VAT Act.
Conclusion
Understanding the Tax Invoice Korea system is essential for any business operating in the Korean market. Tax invoices are a core component of VAT compliance, serving as the official documentation of taxable transactions between businesses. Companies must ensure that tax invoices are issued accurately, include all mandatory information, and are submitted within the required deadlines to avoid penalties and potential VAT deduction issues.
For foreign companies entering Korea, navigating electronic tax invoice requirements, VAT rules, and the Hometax system can be complex without proper guidance. Working with experienced professionals helps ensure that your tax compliance processes are structured correctly from the beginning. Behalf Korea supports foreign businesses with accounting, tax compliance, and corporate administration services, helping companies operate smoothly and remain fully compliant with Korean tax regulations.
FAQ
What is a tax invoice in Korea?
A tax invoice in Korea is an official VAT document issued by a taxable business to prove that a supply of goods or services occurred and VAT was charged.
Who must issue tax invoices in Korea?
Corporations and individual businesses with annual supply exceeding KRW 80 million must issue electronic tax invoices through the National Tax Service system.
When must a tax invoice be issued in Korea?
A tax invoice must be issued by the 10th day of the month following the month in which the supply occurred.
What happens if a tax invoice is not issued?
Failure to issue a tax invoice may result in VAT penalties, surcharges, and possible denial of input tax deductions.
How are electronic tax invoices issued in Korea?
Electronic tax invoices are issued through the National Tax Service Hometax system or approved ERP platforms connected to the NTS.
