Understanding VAT Reports for South Korea

Value-added tax (VAT) is a noncumulative tax that is imposed at each stage of the production and distribution cycle. Businesses in South Korea are required to submit reports that list transactions involving VAT.

You run the Generic VAT Processing program (R700001) to generate these VAT reports for South Korea:

• Tax Invoice Summary by Customer

• Tax Invoice Summary by Supplier

• Error List

The system generates all three reports when you run version XJDE0001 of the Generic VAT Processing program.

When you run version XJDE0001 of the Generic VAT Processing program, the system generates all three reports in a PDF format. The system also populates the Informed Taxes by Report table (F700018) if you have enabled the process and run the process in final mode. You can use the Informed Taxes by Report program (P700018) to remove transactions that are in error. After you correct records that were in error, you run the process in final mode to generate the final PDF report for the Tax Invoice Summary by Customer and Tax Invoice Summary by Supplier reports. You submit the final PDFs to the tax authority to report your VAT transactions.