Understanding Korean Electronic Tax Invoices (세금계산서) for Foreigners

🧾 Understanding Korean Electronic Tax Invoices (세금계산서) for Foreigners

If you're running a business in Korea, you may be required to issue or receive a tax invoice (세금계산서). This guide explains what they are, when to issue them, and how to handle them properly via HomeTax.

📌 What Is a 세금계산서 (Tax Invoice)?

A 세금계산서 is an official electronic invoice issued for VAT-reportable transactions. It must be issued to clients when selling goods or services in Korea.

📋 Who Must Use Electronic Tax Invoices?

• Businesses registered for VAT (일반과세자)
• Sole proprietors and corporations dealing with B2B transactions
• Any business charging VAT to Korean clients

🖥️ How to Issue a Tax Invoice on HomeTax

1. Go to www.hometax.go.kr
2. Login with 인증서 (joint certificate)
3. Top menu: 전자세금계산서 → 발급하기 (Issue)
4. Enter buyer’s business info (name, reg. number, address)
5. Input item name, quantity, amount, VAT
6. Click 발급 (Issue)

🧾 Issue a Tax Invoice on HomeTax

📦 When Do You Need to Issue It?

• By the 10th of the following month after the transaction
• Delays can lead to VAT reporting penalties

💼 What If You Don’t Issue One?

• Clients can refuse to pay VAT without an invoice
• You may face fines and lose tax credit opportunities

✅ Tax Invoice vs. 일반계산서 (General Receipt)

Type	Used For	VAT?	Reported to NTS?
세금계산서 (Tax Invoice)	VAT-eligible B2B sales	Yes	Yes
일반계산서 (General Invoice)	Non-VAT or personal sales	No	No

📌 Tips for Foreign Business Owners

• Use an accountant (세무사) if unsure
• Save all invoice copies digitally
• Issue and report on time each quarter

📞 English Support

Call the National Tax Service at ☎ 126 → Press 7 → Press 1 (English-speaking agents available)

📞 Call NTS English Support

📍 Final Summary

• Tax invoices are required for VAT transactions
• Use HomeTax or your tax pro to issue monthly
• Non-issuance can lead to penalties or audit

Understanding and issuing Korean tax invoices isn’t hard — just stay on schedule and use the right tools.