Mandatory

The South Korean government mandated real time electronic tax invoice which is called e-Tax in 2014. Since 2014 VAT registered businesses whose turnover exceeds 300 million KRW (264.5 K US Dollars) are under obligation to send their invoices to the tax authority via the National Tax Service (NTS). All responsible businesses must obtain a digital certificate before issuing a tax invoice. The e-Invoicing requirement applied to both legal businesses and individuals with a turnover of KRW 0.3 billion (about $250,000). Currently, the annual sales threshold is reduced for taxpayers who must issue and submit e-Invoices (from KRW 300 million to KRW 200 million) in July 2022. The most recent change is a reduction in the threshold to KRW 100m (approx. $76,000), which is set to take effect on 1 July 2023.