Starting January Next Year, Cash Receipts Will Also Be Issued at Car Washes and Used Furniture Stores

National Tax Service Adds 8 More Industries to Mandatory Cash Receipt Issuance
Approximately 90,000 Businesses as of December Registration

[Sejong=Asia Economy Reporter Kim Hyunjung] Starting January 1 next year, cash receipts will be available at car wash stations, used furniture stores, and health supplement businesses. For cash transactions of 100,000 KRW or more, cash receipts must be issued mandatorily even if the consumer does not request them.

On the 15th, the National Tax Service announced that eight consumer-facing industries will be added to the mandatory cash receipt issuance list starting next year: health supplement retail, bag and other leather product retail, wallpaper, flooring cover and sheet retail, used furniture retail, tool retail, camera and photographic equipment retail, car wash business, and motorcycle repair business. Based on business registrations as of December this year, about 90,000 businesses fall under these industries.

Businesses in industries newly subject to mandatory issuance must issue cash receipts for cash transactions of 100,000 KRW or more per transaction, regardless of consumer request.

If a business in a mandatory issuance industry fails to issue a cash receipt, a penalty tax amounting to 20% of the transaction amount will be imposed. Consumers can report violations to the National Tax Service with supporting documents, and if the violation is confirmed, they will receive a reward of 20% of the unissued amount. The reward limit is 500,000 KRW per transaction and 2,000,000 KRW annually per individual.

Employees who receive cash receipts can benefit from a higher income deduction (30%) compared to credit cards (15%).

The National Tax Service is informing businesses newly added to the mandatory issuance list about the updated requirements through individual notices and the publication of a cash receipt guidebook to prevent any disadvantages due to lack of awareness. Businesses without cash receipt terminals can issue cash receipts through the National Tax Service’s Hometax cash receipt issuance system. Anyone with business registration and Hometax membership can issue cash receipts without a separate approval process by simply applying for issuance.

This content was produced with the assistance of AI translation services.