South Korea introduced its electronic tax invoice framework in 2009 under the supervision of the National Tax Service (NTS). Today, the country operates one of the world’s most mature Continuous Transaction Control (CTC) models, requiring electronic reporting of tax invoices in near real time.
Scope of the e-Invoicing System
The South Korean e-Tax Invoice obligation applies to both corporate taxpayers and eligible individual businesses.
Electronic tax invoices are generally required for Business-to-Business (B2B) transactions, while electronic reporting obligations also apply in accordance with the requirements established by the National Tax Service.
B2G (business-to-government) transactions have been under obligation since 2011.
Timeline of Implementation
South Korea introduced e-Tax Invoicing gradually based on taxpayer type and annual turnover.
The implementation evolved as follows:
- 2011 – Corporate taxpayers
- 2012 – Large individual taxpayers
- 2014 – Expanded scope for individual businesses
- 2019 – Additional expansion including tax-exempt transactions
- 2022 – Threshold reduced to KRW 200 million
- 2023 – Threshold reduced to KRW 100 million
The National Tax Service may continue to expand the scope of taxpayers subject to mandatory electronic invoicing through future regulatory updates.
Technical details of the e-Tax Invoice System
Electronic tax invoices are generated in XML format in accordance with the technical specifications published by the National Tax Service.
Taxpayers must use a valid digital certificate to authenticate electronic tax invoices before submission.
Electronic tax invoices should be retained in accordance with the applicable South Korean record retention requirements.
Portal and Submission Process
The Hometax platform serves as the primary electronic tax portal operated by the National Tax Service.
Taxpayers may generate and submit invoices directly through Hometax or integrate their ERP systems with the National Tax Service using approved electronic transmission methods.
Large organizations typically integrate their ERP systems directly with the NTS or use certified service providers to automate invoice transmission and reporting.
Certification
Electronic tax invoice issuance requires the use of a valid digital certificate recognized by the National Tax Service.
South Korea supports several approved authentication methods, including joint certificates and financial certificates, depending on the taxpayer’s authentication method.
How can SNI help you?
SNI provides an end-to-end South Korea e-Invoicing solution that enables businesses to comply with the requirements established by the National Tax Service (NTS).
Our solution supports the complete invoice lifecycle, including invoice creation, data extraction, mapping, XML generation, validation, digital signing, transmission, monitoring, reconciliation, and long-term archiving.
SNI automatically extracts invoice data from ERP systems and generates electronic tax invoices in accordance with the latest NTS technical specifications.
For outbound invoices, SNI securely transmits invoice data through the approved communication channels while monitoring submission acknowledgements, validation responses, and document status updates.
For inbound invoice processing, SNI supports the automated retrieval and processing of structured invoice data, enabling seamless integration with ERP systems and downstream financial processes.
All inbound invoices are displayed in SNI’s Inbound Cockpit, providing centralized monitoring, invoice status tracking, structured invoice visualization, and human-readable HTML/PDF rendering.
SNI’s invoice reconciliation functionality automatically matches incoming invoices with purchase orders, delivery notes, or other ERP documents, reducing manual effort while improving processing accuracy and accelerating invoice approval workflows.
SNI solution integrates with clients’ systems without requiring ERP upgrades and supports SAP ECC 4.7 and higher, SAP ERP, SAP S/4HANA, and SAP Business Technology Platform (SAP BTP) while remaining ERP-independent.
With continuous monitoring of regulatory developments published by the National Tax Service (NTS), SNI enables organizations to maintain long-term compliance while minimizing implementation effort and operational risk.