Penalties on false tax invoice

From 2018, under the amended Value-added Tax law, the penalties on false tax invoice increased from 2% to 3%. Please be aware that the penalties are imposed to both supplier and the buyer.

  • Case 1 – False tax invoice issued without a real/actual transaction.

Penalty calculation : Amount stated in the tax invoice x 3%

  • Case 2 – Amount excessively stated in the false tax invoice.

Penalty calculation : Excessively stated amount x 3%

 

written by USCPA in Seoul Song I Yoon (siyoon@theclacc.com)

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