Be Sure to Keep Cash Receipts for Study Cafes and Bowling Alleys from Now On [2023 Tax Reform]

Mandatory Cash Receipt Issuance Industries Increase from 125 to 138
Includes Travel Business, Swimming Pool Operation, Bowling Alley Operation, etc.
Study Cafes Included in Reading Room Operation Industry

In the future, businesses such as study cafes, swimming pools, and bowling alleys will be included in the mandatory cash receipt issuance sectors.

According to the '2023 Tax Law Amendment' announced by the Ministry of Economy and Finance on the 27th, the government will increase the number of sectors required to issue mandatory cash receipts from the existing 125 to 138. The sectors include travel businesses, swimming pool operations, squash courts, other sports facility operations, bowling alley operations, clothing, pet funeral and protection services, among others. It was also corrected that study cafes are included under the previously mandatory sector of reading room operations.

The mandatory cash receipt issuance sectors require businesses to issue cash receipts for cash transactions exceeding 100,000 KRW per transaction, even if the consumer does not request it. If a business in these sectors fails to comply with the cash receipt issuance obligation, they must pay a penalty tax of 20% on the unissued amount. Currently, sectors such as lawyers and other professionals, hospitals, general tutoring academies, golf course operations, and wedding halls are included.

The Ministry of Economy and Finance explained that this measure is "to establish a foundation for identifying income and formalizing the tax base." This measure will apply to transactions supplying goods or services from January 1, 2025, onwards.

Through cash receipts, businesses receive a deduction of 1.3% of the issued amount when filing value-added tax. Users receive income deduction benefits if the total annual amount spent on cash receipts, credit cards, and debit cards exceeds 25% of their total salary.

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