In this overview, we present the basics of South Korea: a non-fiscal country with no mandatory POS certification, fiscal hardware requirements, or real-time tax authority approval for ordinary retail transactions.

The Q&A document is an essential resource that provides clear answers to the most frequently asked questions in retail. It saves valuable time by consolidating complex information into a practical and accessible format. Prepared by our team of experienced experts, it addresses key issues such as document types, business processes, laws, etc.

The purpose of this document is to emphasize the most important characteristics and requirements regarding receipts, invoices, return policies, online sales, record keeping, cash registers, VAT recording, penalties and store registration in the system of South Korea.

The document serves as a legal and operational guide for retail, VAT, and compliance in South Korea. It covers regulatory details, VAT rules, reporting obligations, retail processes, and business registration, etc.

South Korea’s Value Added Tax Act regulates VAT obligations, including taxable transactions, VAT rates, exemptions, business registration, tax invoices, reporting, payments, refunds, and penalties.

South Korea’s Income Tax Act regulates individual income taxation, including taxable income, deductions, capital gains, withholding tax, tax returns, payments, and penalties.