- The deadline for submitting a corrected VAT invoice has been extended to one year after the filing due date of the VAT return. The amended VAT invoice may be submitted no later than a year after the filing due date of the VAT return for the taxable period in which the date of delivery of goods or services occurs.
- The VAT payment in the same taxable period will no longer be required to ease the conditions for granting an advance VAT invoice.
- Late payment penalty charge will be reduced to 0.019% to 0.022% per day (or 6.94% to 8.03% per annually).
- New VAT documentation requirements for non-resident entities providing electronic service providers has been introduced. The Bill mandates foreign companies that offer electronic services to Korean clients to keep records for five years. Moreover, the documents should be submitted to the tax authorities within 60 days after receiving the request. This requirement will apply to electronic services offered on or after 1 July 2022 and will take effect on that day.
- VAT-registered firms in Korea importing products from foreign companies must provide particular documents to establish the customs value of the items.
Source: globalvatcompliance.com
