How to issue a Purchase Confirmation for certain items provided free of charge
No translation in your language yet — showing the English version
I am currently working at an export trading company. Out of 8 items received from the manufacturer, 2 items are being provided free of charge to the overseas customer. I am inquiring about how to issue a Purchase Confirmation to apply the zero tax rate.
Currently, I am unable to issue the Purchase Confirmation because the export amount (USD) stated on the Export Declaration (Export Permit) is less than the purchase amount (KRW) on the tax invoice issued by the manufacturer.
The reason for the free provision is as follows: In a previous order, we exported the same items, but a connection failure occurred due to parts exceeding the tolerance limits, resulting in their disposal. Therefore, in this current order, those 2 specific items are being provided free of charge for export.
In this case, when issuing the Purchase Confirmation for the zero tax rate, is it acceptable to exclude the 2 free-of-charge items? Furthermore, since the manufacturer has already issued a tax invoice without including the free items, would it be problematic if the total amount and the number of items on the tax invoice differ from those on the Purchase Confirmation?
Answer 1
- 0The amount on a Purchase Confirmation must, under any circumstances, be equal to or less than the export amount. Goods provided free of charge should be excluded from the Purchase Confirmation amount, and the confirmation should only be issued for the remaining balance. Regarding tax invoices, you should issue corrected invoices by separating them into standard tax invoices and zero-rated tax invoices.Machine translated
Write an answer
0
Comments 0