E-Invoice in South Korea
Korea is ranked as having the third-largest economy in Asia, and worldwide it stands number 15th in the world’s largest economic powers. The economy is propelled by technology, agriculture, and foreign investments. With the kind of businesses mentioned above, there is a need that payments are made through e-invoices and even notifications for payments can be made through electronic invoices.
E-invoices are preferred because of their flexibility and immediacy and they can be able to be followed up electronically for tax purposes. They are also quicker, easier to create as compared with the standard print invoices and offer flexibility in that one does not need an office to create the same, but a smartphone and even when one is in transit business can still be in progress.
Both in South Korea and North Korea, it is a requirement that a seller gives to a buyer a purchase invoice to document the goods or services that are exchanged, the quantity, as well as the quality of the goods and the price, agreed upon at the point of exchange.
This caters to tax evasion as well as it is the requirement of the state that they monitor how various sectors are performing and this can be perfected through monitoring the number of transactions on various commodities and services. They are also used as proof of purchase of a product or a service, and the amount remitted in the transaction including the way the money was remitted.
The sales invoice originates from the business that is selling goods or offering a certain service to a client, and the fundamental difference it has with a purchase invoice is that it acts as a way of requesting for payment of goods delivered or a service that has been rendered.
In Korea, it is a requirement that this particular invoice should include a brief description of the product or service sold, the quantity as well as the price. It is meant to serve as an official record of a sale to both the seller and the buyer.
In Korea, some businesses provide their clientele more especially the loyal customers with discounts or refunds wherever there is an anomaly in the goods supplied or the type of service that is offered. A credit invoice is meant to correct an error in a previous invoice and to foster relations between the client and the business.
Sometimes the goods may be damaged in transit and there may be the need for a refund, or the quality of goods delivered or service is substandard. The invoice always has a total negative figure.
South Korea has heavily invested exporting agricultural products and technological facilities, hence a need for commercial invoices to deal with international trade. It is a requirement by both governments of Korea to remit customs duty and commercial invoices help the government in determining the taxes that various businesses should remit.
The invoice captures the quantity and quality of goods shipped, the description of goods to determine how much taxes they are supposed to remit, the packaging format to ensure that they arrive in their destination well and the total value of the goods.
A number of employees in Korea are paid according to the number of hours that they work, and this is very important in ensuring that employees give their best, work within the hours stipulated, and there is the maximization of the time under the discretion of different employees. In most organizations, employees are supposed to clock in once they get to their places of work to maximize the time that they are there and get time to engage in another activity.
This type of billing takes care of the employees on issues of exploitation, as the standard number of working hours per day should be eight, and anything above that, the employee relations bodies stipulate that it should be paid as overtime, at a different rate which is higher than the normal one. It also caters to the rights of employees that they are not overworked, neither should they be overworked and demand full pay which they have not worked for. These types of invoices are common to lawyers, creative agencies, business consultants, psychologists, and general consultants.