๐ Ever found yourself tangled in the complexities of issuing an electronic invoice in a foreign country?
When I signed a contract with a Korean company, I was thrown into the world of electronic invoicing, and it felt daunting at first. Here are some key points I learned along the way:
โข Understand the Basics: An electronic invoice (์ ์์ธ๊ธ๊ณ์ฐ์) is essential for business transactions in Korea, processed through the National Tax Service's HomeTax system.
โข Prerequisites Matter: Ensure you have a valid business registration number, a HomeTax account, and a specific digital certificate for issuing invoices.
โข Step-by-Step Process: From logging in to HomeTax to filling in invoice details, following a structured approach can simplify the process significantly.
โข Get the Right Certificate: The distinction between regular banking certificates and tax-purpose certificates is crucial. Always request the correct type at your bank.
โข Important Reminders: Invoices must be issued within the same month of the transaction, and keep copies for at least 5 years!
Navigating this system may seem tricky, but with the right guidance, it can become a manageable task. Don't hesitate to reach out for help if needed!
Category
Startup
Korea Guide
Date
May 23, 2025
Published
Published
Preview
This document provides a comprehensive guide on how to issue an electronic invoice in Korea, detailing the prerequisites, step-by-step process, and important notes. It explains the necessity of having a valid business registration number and a digital certificate specifically for tax purposes. The guide covers logging into the HomeTax system, navigating to the electronic invoice section, filling in invoice details, and ensuring proper registration of the digital certificate. Additionally, it emphasizes the importance of issuing invoices within the same month of the transaction and maintaining records for at least five years.
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Introduction
If you run a business in Korea you need to know how to issue an electronic invoice! As many of my clients were abroad I didnโt need to worry about issuing an electronic invoice. Until I offered my service to Korean clients. Today Iโm going walk you through how you can issue an electronic invoice. It might seem straightforward once youโve done it but hell when you have no idea!
What is an Electronic Invoice (์ ์์ธ๊ธ๊ณ์ฐ์)?
An electronic invoice, or "์ ์์ธ๊ธ๊ณ์ฐ์" in Korean, is a digital tax document that businesses must issue for goods and services transactions in South Korea. It's mandatory for most business transactions and is processed through the National Tax Service's HomeTax system. This digital system streamlines tax reporting by automatically calculating VAT and income tax, while also providing a transparent record of all business transactions. The electronic format makes it remarkably efficient for both businesses and tax authorities, as it eliminates paperwork and reduces errors in tax calculations, a significant advantage of Korea's advanced digital infrastructure.
Prerequisites
Valid business registration number (์ฌ์ ์๋ฑ๋ก๋ฒํธ)
HomeTax account (๊ณต์ธ์ธ์ฆ์)
Digital certificate for electronic signatures for Tax (์ ์ ์ธ๊ธ์ฉ ๊ณต์ธ์ธ์ฆ์)
Click on '์ธ์ฆ์ผํฐ' (Authentication Center) at the top of the page
Select '๊ณต์ธ์ธ์ฆ์ ๋ฑ๋ก' (Register Digital Certificate)
Choose '์ฌ์ ์' (Business) as your user type
Enter your business registration number (์ฌ์ ์๋ฑ๋ก๋ฒํธ)
Choose Your Digital Certificate for Tax
Enter the password for your digital certificate
Click 'ํ์ธ' (Confirm) to complete the registration
Once registered, your digital certificate will be linked to your HomeTax account, allowing you to issue electronic invoices. Remember that this certificate needs to be renewed annually, typically through your bank or a certified certificate authority.
Note: Make sure you have already obtained the correct type of digital certificate (์ ์์ธ๊ธ๊ณ์ฐ์์ฉ ๊ณต์ธ์ธ์ฆ์) from your bank before attempting to register it in HomeTax.
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How To Issue Digital Certificate from Bank
When you first try to issue an electronic invoice, you might get confused of your certificate not showing up or when adding the certificate manually you get the error message "์ง์ํ์ง ์์ต๋๋ค" (Not Supported) or "Your Certificate Has Not Been Registered". This happens because HomeTax requires a specific type of digital certificate for issuing invoices - your regular banking certificate won't work, even if it lets you log into HomeTax.
The key difference is:
Regular Banking Certificate (์ผ๋ฐ ๊ณต์ธ์ธ์ฆ์): Lets you do online banking and log into HomeTax
Make sure to explicitly request a certificate for tax purposes (์ ์์ธ๊ธ์ฉ) when visiting your bank. This will save you from the frustrating loop of trying to issue invoices with the wrong type of certificate!
Click on '์ธ์ฆ์ผํฐ' (usually found at the top of the page)
Select '๊ณต์ธ์ธ์ฆ์ ๋ฐ๊ธ/์ฌ๋ฐ๊ธ' (Issue/Reissue Digital Certificate)
Choose '๊ธฐ์ ' (Business) customer type
Select '์ ์์ธ๊ธ์ฉ ๊ณต์ธ์ธ์ฆ์' (Digital Certificate for Tax)
Follow the verification process (usually requires your business account information)
Complete payment (fees may apply)
Download and install your new certificate
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Note: The exact menu names might vary slightly due to website updates, but the general process remains the same. Other banks follow a similar process.
Request a digital certificate specifically for HomeTax invoice issuance (์ ์์ธ๊ธ๊ณ์ฐ์์ฉ ๊ณต์ธ์ธ์ฆ์)
Go to HomeTax's ์ธ์ฆ์ผํฐ (Authentication Center) to register your new certificate
This was one of the most confusing parts of the process for me, I could log in to HomeTax with my regular banking certificate but couldn't issue invoices. Make sure to get the correct type of certificate from your bank specifically for invoice issuance.
Important Notes
Invoices must be issued within the same month as the transaction
Keep copies of all issued invoices for at least 5 years
Make sure to verify the recipient's business registration number before issuing
Conclusion
While issuing an electronic invoice in Korea might seem confusing at first, following these steps makes the process manageable. Remember to obtain the correct digital certificate specifically for invoice issuance, verify all information before submission, and maintain proper records. With this guide, you should be able to successfully navigate the Korean electronic invoicing system and meet your business obligations efficiently.
If you encounter any issues during the process, don't hesitate to contact the HomeTax support center or consult with a tax professional. The system is designed to streamline business transactions, and once you're familiar with it, you'll find it to be a straightforward and efficient way to manage your invoicing needs in Korea.
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The blog published by Kim Ninja (Huy-Kim Nguyen) is available for informational purposes only and is not considered legal advice on any subject matter.