Korea's VAT Changes in 2024: Simplified Tax Threshold Increase and E-Invoicing Requirements

Starting from July 2024, the threshold for the simplified sole-proprietors(간이과세자) for small business owners will be increased from the previous 80 million KRW to 104 million KRW, easing the tax burden for small-scale entrepreneurs. However, for real estate rental businesses and taxable entertainment venues, the threshold remains unchanged at 48 million KRW per year. These updates have been individually notified through the "Tax Type Conversion Notice," which can be checked on Hometax.

Business owners who have received a notice of transition to simplified taxation but wish to remain under the general taxation(일반과세자) due to reasons such as issuing tax invoices, must submit the "Simplified Taxation Waiver Form" to their respective tax office by June 30.

Additionally, from July 1, the mandatory issuance of electronic tax invoices has been expanded. Individual business owners with total supply value (including exempt supply value) of 80 million KRW or more in the previous year are now required to issue electronic tax invoices, down from the previous threshold of 100 million KRW.