There have been significant changes for simplified tax payers since July 2021!
Simplified taxable person with previous year's sales of KRW 48 million or more are now required to:
- Issue tax invoices
- File value-added tax (VAT) reports twice a year, in January and July, like general taxable person.
💡 Do all simplified tax payers need to issue tax invoices?
Simplified taxable person who had sales of KRW 48 million or more in the previous year must issue tax invoices (including VAT amounts).
✔ Effective after July 1, 2021, this applies to all transactions.
✔ Newly opened simplified taxable person, retail, food, accommodation, beauty businesses, and receipt-issuing businesses are exempt.
💡 Is there a specific issuance period for tax invoices?
Please issue tax invoices for transactions from July 1 of the year after the year in which the previous year's sales exceeded KRW 48 million until June 30 of the following year.
For example, if sales in 2021 exceeded KRW 48 million, the obligation to issue tax invoices would be from July 1, 2022 to June 30, 2023.
💡 Are the tax rates and formats specified when issuing tax invoices?
The tax rates and formats are the same as those for general taxable person (10% tax rate).
💡 Do I need to issue tax invoices for all transactions?
If you have issued cash receipts or credit card sales receipts, you do not need to issue tax invoices redundantly.
💡 Do I need to file a scheduled report?
Even if you are a simplified taxable person, if you are a tax invoice issuing business, you must file a VAT scheduled report.
If you issued tax invoices in the first half of the year (January to June), you must report and pay by July 25. If you issued them in the second half of the year (July to December), you must report and pay by January 25 of the following year.
There have been significant changes for simplified tax payers since July 2021!
Simplified taxable person with previous year's sales of KRW 48 million or more are now required to:
💡 Do all simplified tax payers need to issue tax invoices?
Simplified taxable person who had sales of KRW 48 million or more in the previous year must issue tax invoices (including VAT amounts).
✔ Effective after July 1, 2021, this applies to all transactions.
✔ Newly opened simplified taxable person, retail, food, accommodation, beauty businesses, and receipt-issuing businesses are exempt.
💡 Is there a specific issuance period for tax invoices?
Please issue tax invoices for transactions from July 1 of the year after the year in which the previous year's sales exceeded KRW 48 million until June 30 of the following year.
For example, if sales in 2021 exceeded KRW 48 million, the obligation to issue tax invoices would be from July 1, 2022 to June 30, 2023.
💡 Are the tax rates and formats specified when issuing tax invoices?
The tax rates and formats are the same as those for general taxable person (10% tax rate).
💡 Do I need to issue tax invoices for all transactions?
If you have issued cash receipts or credit card sales receipts, you do not need to issue tax invoices redundantly.
💡 Do I need to file a scheduled report?
Even if you are a simplified taxable person, if you are a tax invoice issuing business, you must file a VAT scheduled report.
If you issued tax invoices in the first half of the year (January to June), you must report and pay by July 25. If you issued them in the second half of the year (July to December), you must report and pay by January 25 of the following year.