Issuance of Purchase Confirmation and Zero-Rate Tax Invoices when the client is the Export Agent
Machine translated
I am an employee working at an import/export corporation. I am inquiring whether we need to issue a Purchase Confirmation and a zero-rate tax invoice after shipping materials from Korea to an overseas location.
Normally, when our company purchases materials and ships them to an overseas factory, the forwarding company declares our corporation as the Export Agent. However, for this new client, they have declared themselves as the Export Agent. The client claims that since they are listed as the Export Agent on the Export Declaration Certificate, we do not need to issue a zero-rate tax invoice. I would like to confirm if this is correct.
In other words, when the Export Agent at the time of export declaration is the client company:
1) Do we not need to issue a Purchase Confirmation?
2) Does the client also not need to issue a zero-rate tax invoice?
Answer 1
- 0When applying the zero tax rate to direct exports, the export agent is not subject to the zero tax rate. Since the new client has identified themselves as the export agent on the export declaration, you cannot report it using the zero tax rate. Furthermore, regarding domestic transactions, whether to apply the zero tax rate based on the issuance of a purchase confirmation is optional; therefore, you are not required to issue a purchase confirmation or a zero-rated tax invoice.Machine translated
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