Travel Agencies and Study Cafes Must Issue Cash Receipts Mandatorily Starting Next Year

Mandatory Issuance for Transactions Over 100,000 Won
20% Reward Paid for Unissued Amounts Reported

On the 15th, the National Tax Service announced that it has newly designated 13 industries, including travel agencies and study cafes, as mandatory cash receipt issuance industries. From 2025, these industries must issue cash receipts for transactions of 100,000 KRW or more, even if the consumer does not request issuance.

The 13 industries newly added as mandatory cash receipt issuance industries from 2025 are ▲clothing accessories and imitation jewelry retail ▲outdoor stadium operation ▲squash courts and other sports facility operations ▲travel business ▲ski resort operation ▲computer and peripheral device repair ▲other travel support and reservation services ▲comprehensive sports facility operation ▲pet funeral and protection services ▲ambulance services ▲swimming pool operation ▲indoor stadium operation ▲bowling alley operation. Study cafes will be included under reading room operation from next year and will be subject to mandatory issuance.

The National Tax Service introduced the cash receipt system in 2005 to secure tax transparency for self-employed individuals and establish a fair market order. Since 2010, it has implemented a system requiring mandatory issuance of cash receipts for cash transactions above a certain amount and has expanded the mandatory issuance industries every year.

From January 1, 2025, businesses in the newly added mandatory issuance industries must issue cash receipts for cash transactions of 100,000 KRW or more (including VAT) per transaction, even if the transaction counterpart does not request issuance. If the personal information of the transaction counterpart is unknown, the receipt must be issued to the National Tax Service designated number within 5 days from the transaction date.

Businesses that issue cash receipts can apply for VAT tax credit, and the received cash receipts can be recognized as VAT input tax and necessary expenses for comprehensive income tax.

Employees who receive cash receipts can check the amount used through the 'Year-end Tax Settlement Simplification Service' and receive income deduction benefits during year-end tax settlement. If a mandatory issuance business fails to issue a cash receipt, a penalty tax amounting to 20% of the unissued amount will be imposed.

Consumers can report violations of issuance obligations to the National Tax Service with supporting documents, and if the violation is confirmed, a reward of 20% of the unissued amount will be paid.