간이영수증If the receipt rate of eligibility certificates is low compared to the purchase amount, you may be subject to investigation.
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If you spend more than 30,000 won in relation to your business, you can reduce taxes by receiving proof of eligibility. When filing a value-added tax return, the input tax amount can be deducted through proof of eligibility, and when filing a comprehensive income tax return, it can be recognized as a necessary expense and lower the income amount.
What is recognized as qualifying evidence under tax law is ‘tax invoice, invoice (tax exemption), credit card sales slip, cash receipt, etc.’ However, if the transaction amount is a small amount, there are cases where you do not receive proof or you receive a simple receipt rather than a qualified certificate.
Although it is not a qualifying proof, it is a good idea to also receive a simple receipt if the transaction was related to a business. If you can prove that it is a business-related expense, you can treat it as an expense. However, you must pay a 2% additional tax for failure to receive proof of eligibility.
If a self-employed person wishes to process simple receipts as expenses, he or she may fill out the ‘Receipt Receipt Statement’ when reporting comprehensive income tax, attach it to the comprehensive income tax return, and submit it.
However, caution must be taken because if the difference between the purchase amount and the amount received as proof of eligibility is excessive, it may be subject to a tax audit.
Businesses that issue simple receipts are likely to omit the relevant sales when reporting value-added tax or comprehensive income tax.
Businesses who submit simple receipts as proof of purchase also believe that it will be difficult to cross-verify the simple receipts even if they spend a large amount as expenses, so they obtain multiple simple receipts and falsely account for expenses.
Because the tax authorities are also aware of this, they are requesting explanations from businesses with a low proportion of eligibility documents when conducting post-verification after reporting corporate tax or comprehensive income tax.
Biz&Tax, a website specializing in tax accounting, said, “Just because expenses can be processed with a simple receipt does not mean that we recommend this method,” adding, “It is only an auxiliary means that can be processed in some unavoidable situations where it is difficult to receive proof of eligibility. Therefore, we must be careful not to abuse it,” he emphasized.
[Source: National Tax Ilbo / Reporter Choi Yun-jeong (YJCHOI@TAXTODAY.CO.KR)]
Article published date: [2022/08/25]
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