# Table of Contents

|I. INTRODCUTION|
|---|
|1. Background ................................................................................................. 1|
|<br>2. Literature Review ........................................................................................ 2|
|3. Study Objectives and Scope ........................................................................ 5|
|II. ETI EXPERIENCES ACROSS COUNTRIES|
|1. What is ETI? ................................................................................................ 6|
|2. ETI Process .................................................................................................. 7|
|3. ETI across Countries ................................................................................... 10|
|EU Countries ........................................................................................ 10|
|Non-EU Countries ................................................................................ 14|
|III. KOREA’s ETI INTRODUCTION|
|1. Key Drivers of ETI ...................................................................................... 16|
|Strong ICT and E-government Development ....................................... 16|
|Korea’s Success with Electronic Tax Administration .......................... 16|
|Onerous Requirements for Invoice Submission to the NTS ................ 18|
|Combating Invoice Seller Fraud........................................................... 19|
|2. Introduction of ETI in Korea ....................................................................... 20|
|3. ETI Challenges and Korea’s Approach ....................................................... 23|
|Improving Taxpayer Service vs. Combating Tax Frauds ..................... 23|
|Optional vs. Compulsory ...................................................................... 27|
|Standardization of E-invoice ................................................................ 29|
|Incentives for E-invoice ....................................................................... 30|
|Buyers’ Acceptance of E-invoice ......................................................... 31|
|IV. ASSESSING KOREA’S SUCCESS WITH ETI|
|1. Analysis of NTS Data .................................................................................. 32|
|Pace of ETI Adoption ........................................................................... 32|
|Reduced Tax Compliance Cost ............................................................ 33|
|Combating Tax Evasion Fraud ............................................................. 34|
|2. Analysis of Perception Survey Data ............................................................ 36|
|V. CONCLUSION ......................................................................................................... 38|
|References ...................................................................................................................... 42|
|Annexes ......................................................................................................................... 48|
|1. Demographics of Survey Respondents ............................................................ 47|
|2. Contingency Table of Response and Results of Chi-Square Tests .................. 49|
|3. Response by Respondents Group ...................................................................... 50|

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