Korea tax guide
Tax Invoice vs Cash Receipt vs Card Receipt in Korea
3.3% Freelancer Tax
Who this guide is for
- Foreign freelancers and sole proprietors in Korea
- New foreign business owners receiving Korean receipts
- Buyers unsure which document to request
- Businesses reconciling Hometax purchase data
Quick Answer
A Korean tax invoice, expense-proof cash receipt, and eligible credit-card sales slip can each document a transaction, but they are not interchangeable in every case. The correct evidence depends on whether the supply is VAT-taxable, who the buyer is, the payment method, invoice-issuance rules, and whether the buyer needs an input-VAT credit or only expense support. Request the correct document in the registered business name at the time of purchase.
Key points
- A tax invoice separately records supply value and VAT between registered businesses.
- A cash receipt must be issued for the proper proof purpose and identifier.
- A business credit-card slip can support specified purchases without a duplicate tax invoice.
- An ordinary receipt or bank transfer alone may not provide the same VAT evidence.
- Do not request duplicate evidence that reports one purchase twice.
Step-by-step explanation
Match the document to the transaction
Before paying, identify whether the supplier is VAT-registered, whether the supply is taxable or exempt, whether the buyer is acting as a business, and how payment will be made. Ask the supplier which qualifying document will be issued and provide the buyer’s registered details accurately.
Understand the three evidence paths
An electronic tax invoice reports the supplier, buyer, supply value, VAT, and supply date. An expense-proof cash receipt can identify a business purchaser when cash or a covered cash-like method is used. An eligible business card slip records a card purchase and can support the prescribed tax treatment. Each document should be reconciled to the underlying supply rather than collected mechanically.
Avoid duplicate reporting
One purchase should appear once in the expense and VAT ledgers. When a payment method already produces qualifying evidence, confirm whether a separate tax invoice is permitted or necessary. Match cancellations, partial refunds, and corrected documents so the original amount is not left in the return.
Check Hometax and retain context
Download or review the available purchase data, then match it to contracts, delivery, payment, and business purpose. Hometax data helps reconciliation but does not prove that every item is deductible or business-related.
Documents you may need
- Electronic tax invoice
- Expense-proof cash receipt
- Credit or debit card sales slip
- Supplier business details
- Purchase contract or order
- Bank or card statement
- Hometax purchase record
Common mistakes
- Using a personal cash-receipt identifier for a business purchase
- Requesting a second tax invoice for the same card transaction without checking the rule
- Confusing an estimate or simple receipt with qualified evidence
- Failing to verify the buyer's business number
- Recording the same purchase twice
When should you ask a tax professional?
Ask a qualified tax professional if you have income from several countries, business income, unclear tax residency, treaty questions, missing documents, late filing concerns, or a visa situation that depends on tax records. This site explains general patterns only and cannot review your personal facts.
FAQ
Which receipt should a Korean business request?
Use the document required for that supply and payment method. For a VAT-taxable business-to-business supply, a tax invoice may be central; qualifying card or expense-proof cash-receipt data can support other purchases.
Is a bank transfer proof of a deductible purchase?
It proves payment but may not satisfy the tax-invoice or qualified-receipt requirements. Keep the contract and required tax evidence as well.
Can I use a personal cash receipt for business VAT?
Do not assume so. Request expense-proof issuance using the registered business identifier and verify how it appears in Hometax.
Official Sources to Verify
Tax rules and filing procedures in Korea may change depending on your visa status, income type, tax residency, and the tax year. Before making a tax decision, always verify your situation with official sources or a qualified professional.