If an unissued electronic invoice was issued and transmitted before the 11th day of the month after the end of the taxable period to which the supply period belongs,
how is the penalty tax calculated?
○ Unlike the Value Added Tax Act, the Income Tax Act does not distinguish between delayed
issuance and non-issuance, and only states that a penalty tax of two percent
of the supply price is imposed “where an invoice is not issued
(Article 81 (3) 4 (a) of the Income Tax Act)".
* The precondition for imposition of penalty tax for delayed issuance of electronic invoice
is that an invoice has been issued. Therefore, such penalty tax shall not apply to unissued invoices.
- “Where an invoice is not issued" includes cases where invoice issuance is delayed and
issued after the issuance period.
○ Therefore, where an invoice issuance is delayed and not issued
during the issuance period, penalty tax of two percent of the supply price shall be imposed.
Source: National Tax Service (Sep. 29, 2017)