(1) Where an entrepreneur falling under subparagraph 1 supplies any goods or services subject to value-added tax and subsequently issues documents evidencing such transaction under subparagraph 2 (hereafter in this Article referred to as "credit card sales slips, etc.") during the time limit for issuing tax invoices under Article 34 (1) or receives payments by any means of electronic settlement prescribed by Presidential Decree, the amount specified in subparagraph 3 shall be deducted from the amount of tax payable: <Amended on Dec. 31, 2019; Dec. 22, 2020; Dec. 8, 2021; Dec. 31, 2023>
1. Entrepreneur: Any of the following entrepreneurs:(a) Any entrepreneur running a business prescribed by Presidential Decree, which supplies goods or services mainly to general taxable persons other than entrepreneurs (excluding both corporate entrepreneurs and sole proprietors whose total proceeds from supply of goods or services in the immediately preceding year exceed an amount prescribed by Presidential Decree);(b) A simplified taxable person falling under Article 36 (1) 2;
2. Documents evidencing transactions: Any of the following documents:(a) Credit card sales slips under the Specialized Credit Finance Business Act;(b) Cash receipts under Article 126-3 of the Restriction of Special Taxation Act;(c) Other similar documents prescribed by Presidential Decree;
3. The amount deducted (the ceiling of which shall be five million won a year, but shall be 10 million won a year until December 31, 2023): One percent (1.3 percent until December 31, 2026) of the issuance amount or settlement amount:(a) Deleted; <Dec. 22, 2020>(b) Deleted; <Dec. 22, 2020>
(2) In applying paragraph (1), if an amount deducted exceeds the amount of tax payable prior to the deduction of the relevant amount [referring to the tax amount computed by the deduction or addition of the tax amount (excluding the penalty imposed under Article 60 of this Act and Articles 47-2 through 47-4 of the Framework Act on National Taxes) that shall be deducted or added under this Act, the Framework Act on National Taxes, and the Restriction of Special Taxation Act from the amount of tax payable under Article 37 (2), and if the tax amount calculated is less than "zero," it shall be deemed "zero"], the portion of such excess shall be deemed zero.
(3) Where an entrepreneur receives any goods or services supplied by another entrepreneur prescribed by Presidential Decree and a credit card sales slip, etc. in which the value-added tax amount is identifiable separately, the value-added tax amount shall be deemed the input tax amount deductible under Article 38 (1) or 63 (3), if he or she satisfies all of the following requirements: <Amended on Dec. 22, 2020>
1. He or she shall submit a statement on the receipts of the credit card sales slip, etc. prescribed by Presidential Decree;
2. He or she shall keep the credit card sales slip, etc. by applying mutatis mutandisArticle 71 (3). In such cases, the credit card sales slip, etc. deemed to have been duly kept if the evidentiary materials have been kept in accordance with the method prescribed by Presidential Decree.
3. It shall not be credit card sales slips, etc. issued by a simplified taxable person during the period for which the simplified taxable person is required to issue receipts under Article 36-2 (1) and (2).
(4) Where deemed necessary to manage tax payment, the Commissioner of the National Tax Service may designate any entrepreneur prescribed by Presidential Decree, who supplies goods or services mainly to consumers other than entrepreneurs, as a person required to be a credit card merchant under the Specialized Credit Finance Business Act or as a person required to be a cash receipt merchant under Article 126-3 of the Restriction of Special Taxation Act and direct him or her to become such merchant.
(5) Except as provided in paragraphs (1) through (4), the scope of tax deductions based on credit card sales slips, etc., the designation of persons required to be credit card merchants or persons required to be cash receipt merchants, and other necessary matters shall be prescribed by Presidential Decree.