Invoicing Solutions South Korea
South Korea has for a long time upheld the reputation of a developed, fast growing and prosperous economy. Due to its well-developed democracy, it offers a lower risk business environment for businesses that want to enter the Asian market. The business environment is dynamic and has a very entrepreneurial and aggressive edge. Therefore, it is no wonder why companies from around the world may want to do business in South Korea.
Invoicing Clients in South Korea
E-invoices are widely accepted and are increasingly becoming the preferred means of invoicing. Many companies are opting for e-invoices due to the flexibility, convenience and the ability to be tracked for tax purposes. There are various types of invoices available in South Korea, that are used under different circumstances. These are some of the invoices that can be used:
- VAT invoice
- Sales invoice
- Purchase invoice
- Commercial invoice
- Credit invoice
The following information is required on a value added tax (VAT) invoice:
- Seller’s business name, address and VAT number;
- Buyer’s business name, address and VAT number;
- Invoice date;
- Invoice serial number;
- VAT rate and amount applied;
- Total amount of the sale;
- Total amount of the sale including VAT.
This is used by businesses that sell goods and services to clients. The sales invoice is used to act as a means of requesting payment for goods delivered or services rendered. Sales invoices are required to have a description of the goods sold or services rendered, among other requirements.
In a business transaction, sellers are required to provide a buyer with a purchase invoice which documents the transaction. A purchase invoice is to act as a proof of purchase between the parties and should include important information such as the particulars of both parties, as well as of the transaction.
For large, commercial transactions (such as corporate transactions or international trade) a commercial invoice is required to be issued. The invoice is meant to record the transaction and contain details of the parties to the transaction, goods sold or services rendered, as well as the quantity of the transaction, currency payment is made in and the amount of taxes that are to be paid.
A credit invoice is meant to provide buyers with a discounts, refunds or to correct any incorrect orders. These are usually provided between a buyer and seller who have a well-established relationship.
Advantages of Outsourcing Client Invoicing
- Efficient Record of Transactions – INS Global has a well-organized and efficient system for all invoices.
- Reduced Costs – cross border transactions can be complicated and can be quite costly if the correct procedures are not followed.
- Use of Different Currencies – payments can be made in various currencies, such as EUR, RMB or USD.
- Expertise – INS Global has up to date knowledge on all local regulations and processes that need to be followed, saving your business time and limiting liability.
How INS Global Can Assist You in South Korea
We have experts across a range of HR functions, to help your enterprise do business abroad. We can assist your company to enter a market and begin operations, while ensuring full compliance with local laws and regulations. Our team can assist your company to set up operations in South Korea, find staff and conduct business. Contact us today and let INS Global simplify your company’s expansion.