How to issue an electronic tax invoice?

To issue an electronic tax invoice, you can follow these steps:

1. Obtain a Digital Certificate: You will need a digital certificate for electronic signatures. This can typically be obtained from your primary bank for a small fee.

2. Access the Issuance Platform: You can issue electronic tax invoices through the National Tax Service (NTS) Hometax website, the mobile app (Sontax), or through an Application Service Provider (ASP) that offers electronic tax invoice issuance services.

3. Log In and Navigate: Log in to your chosen platform using your digital certificate. On the NTS Hometax website, navigate to 'Inquiry/Issuance' > 'Electronic (Tax) Invoice' > 'Issuance' > 'Individual Issuance'.

4. Enter Invoice Details: Fill in the required information, including:

   • Supplier Information: Your business details (business registration number, name, address, etc.).
   • Recipient Information: The business details of the recipient (business registration number, name, address, etc.).
   • Item Details: Description of goods or services, quantity, unit price, supply amount, and tax amount. The system often has an auto-calculation feature for the supply amount and tax.
   • Issuance Date: The date of issuance.

5. Select Payment Status: Indicate whether the payment has been received ('Receipt') or is pending ('Claim').

6. Finalize and Issue: Review all entered information for accuracy. After confirmation, you will need to authenticate with your digital certificate again to finalize and issue the invoice.

Verification: After issuance, you can verify if the electronic tax invoice has been correctly issued by logging into the Hometax website and navigating to 'Inquiry/Issuance' > 'Electronic Tax Invoice' > 'List Inquiry' > 'Monthly/Quarterly List Inquiry'. You can also download the data in Excel format for easier review.

Important Considerations:

• Mandatory Issuance: Businesses, including corporations and individuals whose previous year's supply value exceeds certain thresholds (e.g., KRW 300 million or KRW 1 billion, depending on the year and type of business), are obligated to issue electronic tax invoices.
• Penalties: Failure to issue or transmit electronic tax invoices by the deadline can result in penalties (additional taxes).