Streamlining Your B2B Billing in Korea: Invoice vs. e-Tax Invoice
In the global B2B landscape, the word "invoice" is often used as a general term for any payment request.
However, if you are operating in South Korea, treating all invoices the same can lead to significant billing delays and legal friction.
To streamline your operations, you must distinguish between a standard invoice and a legally required e-tax invoice.
1. What is a Standard Invoice? (The Commercial Request)
In Korea, a standard invoice is essentially a commercial notice sent from a seller to a buyer. It is the first step in the billing process, but it does not carry final legal weight.
Key Characteristics:
Function: Used to request payment and initiate the client's internal approval process.
Legal Status: It is not recognized by the National Tax Service (NTS) as a valid document for tax reporting or VAT deductions.
Format: Can be a PDF, Excel file, or even a paper document. There are no strict formatting rules.
2. What is an e-Tax Invoice? (The Mandatory Legal Standard)
Unlike a regular invoice, an e-tax invoice is a digital document that is legally mandatory for B2B transactions in Korea.
It must be issued in a government-approved format and transmitted directly to the NTS.
Why the e-Tax Invoice is the Standard:
Mandatory Compliance: For corporate entities, issuing an e-tax invoice is a legal obligation. Failing to issue one is a breach of local tax laws.
VAT Eligibility: This is the only document that allows your client to claim input VAT (10%). Without it, your client cannot legally process the transaction in their official books.
Official Verification: Every e-tax invoice is registered with the government, providing a level of security and finality that a regular PDF cannot offer.
3. The Deciding Factor: Understanding the "Write Date"
The most technical and important difference between these two documents lies in the write date.
In the Korean tax-invoice system, there is a clear distinction between when the service was provided and the official date recorded on the document.
Why the Write Date is Critical:
The "Write Date" vs. "Date of Supply": While the Date of Supply tracks when the actual goods or services were delivered, the write date is the official date used for tax accounting and filing purposes.
Strict Issuance Deadlines: The write date determines your legal deadline. Even if you have a separate Date of Supply, the tax-invoice must be issued by the 10th of the following month based on the write date specified.
Legal Requirement: The write date is one of the few "mandatory fields" (필요적 기재사항). If this date is missing or incorrectly recorded, the entire document can be considered invalid, leading to penalties.
4. Optimize Your Billing Workflow with Bolta
Navigating the gap between a simple invoice and a mandatory e-tax invoice shouldn't be a manual burden.
Bolta is a SaaS-based solution built to simplify this transition while offering expert guidance for global teams.
Why B2B Leaders Choose Bolta:
Seamless Conversion: Automatically turn your billing data into a legally compliant e-tax invoice ready for the NTS.
Expert Consultation: Don't let the language barrier or complex regulations slow you down. Bolta provides access to experts who can answer your questions about e-tax invoices in fluent English.
Accurate Data Management: Ensure the write date and Date of Supply are correctly placed to meet all local NTS requirements.
Professionalize your billing in Korea by moving beyond simple invoices. With Bolta, you ensure that every transaction is compliant, every write date is accurate, and every question you have is answered by a professional.