Under the Korean tax law regarding VAT, tax invoices in business transactions are issued and the required contents in the invoices are stipulated. In general, tax invoices are printed out by filling in pre-printed forms, which comply with legal requirements. If a business issues an incomplete tax invoice, then the business is subject to additional tax payment.

The tax invoice must include the business place details of the issuer and the receiver of the products. There are four lines to display the transaction in detail with a description of the materials sold, value of the transaction and VAT amount. If there are more than four transactions, all transaction are shown on a separate sheet of paper (not a legal form) and the summary is shown in the first line of the tax invoice.

To differentiate between the tax invoices to your business partner and the ones between business places different reports have been programmed in the R/3 System. Read below to follow the right procedure of the business processes.