The Korean tax invoice (세금계산서), for foreign buyers

The 세금계산서 is Korea’s VAT invoice. If you are buying from a Korean supplier and expect to account for VAT, it is the document that matters — and there are several situations in which you simply will not be given one.

세금계산서 and 계산서 are not the same document

The names differ by one word and both are routinely translated as “tax invoice” in English correspondence, which causes persistent confusion.

If your supplier sends a 계산서 and your finance team is expecting reclaimable VAT, the mismatch will not surface until the filing. Establish which document you will receive during negotiation, not afterwards.

When you will not get a tax invoice

• The supplier is VAT-exempt. They issue a 계산서 by law. Nothing has gone wrong; there is simply no VAT on the supply.
• The supplier is a small simplified taxpayer. Below 48 million won in annual revenue, they issue receipts rather than tax invoices. See the guide to VAT taxpayer types.
• The supplier has closed. A deregistered business cannot issue a valid tax invoice, and any invoice dated after closure is not valid for your accounts.
• The counterparty holds a 고유번호. Associations and public bodies with a unique number rather than a commercial registration do not issue them.

Electronic issuance is the norm

Korea has used electronic tax invoicing for well over a decade, and corporations are required to issue electronically. In practice you receive an electronic document that has already been reported to the National Tax Service — which is why a supplier’s registration status matters so directly. The system will not accept an invoice from a number that is no longer valid.

What to confirm before the first order

• Which document you will receive — 세금계산서 or 계산서
• Whether the supply is standard-rated, zero-rated or exempt
• That the supplier’s registration is currently active
• That the number on the invoice matches the one you verified