E-invoicing compliance and regulatory updates - South Korea

Electronic Invoicing South Korea

E-invoicing has been present in South Korea since 2011. The country introduced making electronic VAT invoices mandatory for Korean companies, and then slowly began to extend the regulation to cover more taxpayers. For example, in 2014 the country issued the the Continuous Transaction Controls (CTC), a reporting obligation for transation data in near real-time.

South Korea has adopted a clearance invoicing model through the National Tax Services (NTS) and has developed their own platform. 

The current system requires any business that is a corporate entity or, an individual whose total supply value for the previous tax year is more than KRW 200,000,000, to issue an e-invoice for the recipient of goods or services. They must also report the invoice data to the government.  

From 1 July 2023, the e-invoicing mandate will be extended to other companies in a way that the threshold will be lowered to KRW 100,000,000. After 1 July 2024, it is expected that the threshold will be lowered again to KRW 80,000,000

Now, the registration with the National Tax Services (NTS) is required, as well as a “standard authentication” from the National IT Industry Promotion Agency (NIPA).

The use of an electronic signature is mandatory. In order to fulfill this legal requirement, taxpayers may either use a certificate issued by the Korea Information Certification Authority or an e-tax certificate issued by the NTS.

The e-invoicing mandate requires the issuing of an e-invoice to be reported to the government portal within one day of its issuance or, invoices can be reported monthly until the 10th day of the following month in a summarised batch format.

E-invoices must be digitally signed with a PKI electronic signature. Invoices are reported to the National Tax Agency (NTS) portal in XML format.  

Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Download now

Electronic Invoicing South Korea

E-invoicing has been present in South Korea since 2011. The country introduced making electronic VAT invoices mandatory for Korean companies, and then slowly began to extend the regulation to cover more taxpayers. For example, in 2014 the country issued the the Continuous Transaction Controls (CTC), a reporting obligation for transation data in near real-time.

South Korea has adopted a clearance invoicing model through the National Tax Services (NTS) and has developed their own platform. 

The current system requires any business that is a corporate entity or, an individual whose total supply value for the previous tax year is more than KRW 200,000,000, to issue an e-invoice for the recipient of goods or services. They must also report the invoice data to the government.  

From 1 July 2023, the e-invoicing mandate will be extended to other companies in a way that the threshold will be lowered to KRW 100,000,000. After 1 July 2024, it is expected that the threshold will be lowered again to KRW 80,000,000

Now, the registration with the National Tax Services (NTS) is required, as well as a “standard authentication” from the National IT Industry Promotion Agency (NIPA).

The use of an electronic signature is mandatory. In order to fulfill this legal requirement, taxpayers may either use a certificate issued by the Korea Information Certification Authority or an e-tax certificate issued by the NTS.

The e-invoicing mandate requires the issuing of an e-invoice to be reported to the government portal within one day of its issuance or, invoices can be reported monthly until the 10th day of the following month in a summarised batch format.

E-invoices must be digitally signed with a PKI electronic signature. Invoices are reported to the National Tax Agency (NTS) portal in XML format.  

Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Download now

Archiving

All records must be kept for a minimum period of 5 years after the end of the issuing fiscal year.

Every taxpayer must keep the following records when storing invoices:  

  • Supplier and the receiver information  
  • Description of supplying goods or goods being supplied  
  • Value of supplying goods or goods being supplied  
  • Input/output VAT amount  
  • Date of supplying or being supplied  
  • Such other records as may be prescribed.  

Want to know more about Basware’s archiving services?

Download our Basware Vault fact sheet here to learn more about our flexible and scalable solution.

Download now

Basware Services

Basware offers CloudScan for clients to scan their paper invoices via optical character recognition (OCR) technology. The Basware Scan & Capture service is available, without SLA. 

Want to find out how we can help in your specific case?

Speak to a member of our team to learn more.

Contact us

Interoperability

At Basware, we are passionate about delivering the benefits of open interoperability to our customers. That’s why we have partnered with more than 220 e-invoicing networks worldwide to ensure the Basware Network remains the largest open commerce network of buyers and suppliers.

Our advice

An invoice must be issued within 15 days after delivery of the items or provision of the service or after receipt of the payment. To accelerate processes and increase data quality, Basware recommends using electronic or PDF invoices. 

Want to understand how we can help in your case?

Get in touch with our experts.

Contact us

Back to Compliance Map

Electronic Invoicing South Korea

E-invoicing has been present in South Korea since 2011. The country introduced making electronic VAT invoices mandatory for Korean companies, and then slowly began to extend the regulation to cover more taxpayers. For example, in 2014 the country issued the the Continuous Transaction Controls (CTC), a reporting obligation for transation data in near real-time.

South Korea has adopted a clearance invoicing model through the National Tax Services (NTS) and has developed their own platform. 

The current system requires any business that is a corporate entity or, an individual whose total supply value for the previous tax year is more than KRW 200,000,000, to issue an e-invoice for the recipient of goods or services. They must also report the invoice data to the government.  

From 1 July 2023, the e-invoicing mandate will be extended to other companies in a way that the threshold will be lowered to KRW 100,000,000. After 1 July 2024, it is expected that the threshold will be lowered again to KRW 80,000,000

Now, the registration with the National Tax Services (NTS) is required, as well as a “standard authentication” from the National IT Industry Promotion Agency (NIPA).

The use of an electronic signature is mandatory. In order to fulfill this legal requirement, taxpayers may either use a certificate issued by the Korea Information Certification Authority or an e-tax certificate issued by the NTS.

The e-invoicing mandate requires the issuing of an e-invoice to be reported to the government portal within one day of its issuance or, invoices can be reported monthly until the 10th day of the following month in a summarised batch format.

E-invoices must be digitally signed with a PKI electronic signature. Invoices are reported to the National Tax Agency (NTS) portal in XML format.  

Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Download now