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조세심판원 질의회신 | 2000-11-27 | 부가46015-3826 | 부가

Document Number

Additional 46015-3826 ( November 27, 2000)

Items of Taxation

Addition

Journal

Where an entrepreneur constructs a new building to concurrently operate the taxable business and the tax-free business, the input tax amount related to the tax-free business shall be calculated according to the actual reversion, but the input tax amount which cannot be classified into actual reversion as it is used for the taxable business and the tax-free business is calculated in accordance with Article 61 (1) of the Enforcement Decree

Congress RESALS

Where an entrepreneur constructs a building to concurrently operate a taxable business and a tax-free business, the input tax amount related to the tax-free business shall be calculated according to the actual reversion, but the input tax amount which cannot be classified into actual reversion due to the common use for a taxable business and a tax-free business is calculated pursuant to Article 61 (1) of the Enforcement Decree of the Value-Added Tax Act. However, where there is no supply amount for a taxable business and a tax-free business during the relevant taxable period or no supply price for a business exists, the calculated tax amount for the relevant taxable period shall be calculated pursuant to Article 61 (4) of the Enforcement Decree of the Value-Added Tax Act and settled pursuant to Article 61-2 of the Enforcement Decree of the same Act. In applying Article 61 (4) of the Enforcement Decree of the same Act, if it is impossible to distinguish the areas

Related statutes

Article 61 of the Enforcement Decree of the Tax Act

Main text

1. Materials on the contents of questioning;

(a) Related statutes;

Article 61 of the Enforcement Decree of the Value-Added Tax Act

(1) Where an entrepreneur concurrently operates a taxable business and a tax-free business, the input tax amount related to the tax-free business shall be calculated on the basis of actual attribution, and an input tax amount which is commonly used for a taxable business and a tax-free business and is not distinguishable from the actual attribution (hereinafter referred to as “common input tax amount”) shall be calculated by the following formula: Provided, That when a preliminary return is made, it shall be calculated in accordance with the ratio of the total tax-free supply price to the total tax supply price during the preliminary return period,

An input tax amount related to tax-free business

Tax-free Supply Price

= Common purchase tax amount 】 Method

Total supply value

(2) Number (80.12.31)

(3) In the following cases, the input tax amount for the relevant goods shall be the input tax amount to be deducted, notwithstanding the provisions of paragraph (1):

1. Common input tax amounts in cases where the value of tax-free goods supplied is less than 5/100 among the total value of supply in the relevant taxable period; and

2. An input tax amount where the common purchase tax amount during the relevant taxable period is less than 20,00 won.

3. An input tax amount for the goods to which the provisions of Article 48-2 (3) 3 are applied (amended on December 31, 97).

(4) In the application of the provisions of paragraph (1), where there is no value of supply for taxable businesses and tax-free businesses during the relevant taxable period, or no value of supply for any business exists, the calculated amount for the relevant taxable period shall be as follows: Provided, That where it is possible to distinguish between the areas to be provided for taxable businesses and tax-free businesses by newly constructing or acquiring buildings, subparagraph 3 shall take precedence over subparagraphs 1 and 2 (the proviso of December

1. The ratio of the purchase price related to the tax-free business to the total purchase price (excluding the common purchase price);

2. Ratio of the estimated supply price related to the tax-free business to the total estimated supply price;

3. The ratio of the area to be used in connection with the tax exemption business to the total expected area;

(5) In applying the provisions of paragraph (1), in case of a telecommunications business operator under the Telecommunications Business Act, the calculation methods for common purchased tax amount may be calculated by the following formula:

Purchase tax related to the tax exemption business =

Tax-free supply price of the former workplace

Common purchase tax amount 】

Total supply value of the former workplace;

(b) Similar cases.

○ Additional 46015-62, January 10, 1998

【Reasoning】

1. ○○ Enterprise Association is a non-profit public corporation established in June 1994, which is concurrently carrying on the tax-free business and taxable business under the Value-Added Tax Act;

2. The common purchase tax amount has been calculated in accordance with the ratio of the area to be used at the time of the return of the value-added tax in 1994 and 1, 1995.

3. However, under Article 61 of the Enforcement Decree of the Value-Added Tax Act, even if the value of supply for taxable businesses and tax-free businesses was fully calculated, the common input tax amount has been calculated by mistake in calculating the common input tax amount from the return of value-added tax at the second half of 1995 to the supply value ratio. The question is that the competent tax office should calculate the common input tax amount by continuously using the use area ratio because the method of calculating the common input tax amount was calculated by the use area ratio.

4.The business association should apply either the ratio of the value of supply and the ratio of the area of use, by means of calculating the common input tax, which has the value of supply for taxable businesses and tax-free businesses.

【Correspondence】

1. The input tax amount, which cannot be divided into actual attributions due to common use in taxable businesses and tax-free businesses, is calculated according to the supply value for taxable businesses in the taxable period concerned and the revenue amount for the tax-free business under Article 61 (1) of the Enforcement Decree of the Tax Act; and

2. Where there is no supply value for taxable businesses and tax-free business during the relevant taxable period, it shall be based on the estimated supply price ratio or the estimated use area ratio under paragraph (4) of the same Article; and

○ Additional 46015-2856, December 20, 1997

【Reasoning】

The company is a corporation that carries on tax-free business as its main business, and is planning to newly establish a training institute for employees' education and training. The training institute facilities are not continuously used for one year, and a certain period is scheduled to be leased out of the outside. In this case, the method of calculating the input tax amount for new training institute buildings

(1) Under Article 61 (4) 3 of the Enforcement Decree of the Tax Act, the input tax amount related to new construction of a building shall be calculated in proportion to the estimated use area related to the tax-free business in case the private use area to be used for the tax-free business and the lease area to be used for the tax-free business is divided.

(2) However, the training institute facility is not divided in advance into the content of its business or the same facility structure, and it is difficult to distinguish the remaining area for lease which is a taxable business, and it is difficult to distinguish it by period.

For example, the number of days planned to be used for the training of employees of the company mainly conducting the duty-free business among the total number of days available during a year, and the number of days to be provided for the training of a third party can be determined in advance.

(3) Therefore, the computation of input tax following the construction of a new training institute building for both taxable businesses and tax-free businesses shall be calculated according to the ratio of the number of days to be used in the tax-free business among the total number of days used during the taxable period, and the same method shall be applied at the

Article 61 (4) of the Enforcement Decree of the Local Tax Act provides that when there is no supply price for taxable business or tax-free business, or there is no supply price for any business, the calculation method for the taxable period concerned shall be applied in order to the first purchase price ratio, the second scheduled supply price ratio, the third scheduled use area ratio, and the third method shall not be applied in preference because the building training institute can not clearly divide it into taxable business and tax-free business, and the third method may not be applied in preference. Therefore, the calculation of the common purchase tax amount shall be calculated in accordance with the estimated supply price ratio, which is the second method.

[Opinion of Question]

When applying the method of calculating the common input tax amount, the mere application of the ratio of the estimated supply value is difficult to be considered as a reasonable calculation method, and it is reasonable to apply the method of the theory.

【Correspondence】

1. Where an entrepreneur concurrently operating the value-added tax and the tax-free business concurrently constructs a training institute to use it for his/her own training purpose and lease part of it or provides it to other entrepreneur who is not his/her employee with the tax-free business, the input tax amount to be deducted in connection with the new establishment of the training institute shall be calculated according to the actual reversion, but the common purchase tax amount to be deducted in accordance with Article 61 (1) and (4) of the Enforcement Decree of the Value-Added Tax Act shall be calculated in accordance with the provisions of Article 61-2 of the same Decree and Article 63 of the same Decree shall be re-calculated;

2. In such cases, where the portion of the actual reversion directly used for the provision of taxation or tax-free services among the relevant newly constructed buildings is clearly distinguishable from the area of the taxable business and the tax-free business, the input tax amount related to the portion used exclusively for the relevant taxable business or tax-free business shall be fully deducted or deducted, and where the input tax amount related to the portion not separately used for the relevant taxable business or tax-free business is not deducted from the whole amount of the input tax amount, and where the input tax amount related to the portion not separately used, it shall be calculated in accordance with the ratio of the supply

○ Additional 46015-2369, August 6, 199

【Reasoning】

1. Factual basis

(1) us has opened new points in 1997 as a company whose main business is the department store. The initial facility investment expenses are executed from February 1994, and the method of calculation at the time of calculation shall be as follows:

Undeductible portion = Common input tax amount ¡¿ [for example, tax exemption area / (tax exemption area + (tax exemption area)]].

In other words, the estimated value of supply can not be estimated and calculated proportionally based on the expected area, and the input tax deduction has been processed.

② At the second half of 1997, our tax office calculated the input tax amount based on the supply value and received the deduction of input tax amount and less refund. At the subsequent tax office, the tax office calculated the supply value on the input tax amount generated from 1994, and collected 389,046,000 won based on the supply value. We asserted that it is reasonable to divide the input tax amount based on the expected area reported by us to file an objection and file a request for review. As a result, the National Tax Service determines as follows.

input tax amount to be deducted = total input tax amount 】 total input tax amount + total purchase tax amount * total area * tax supply value / total supply value / total supply value.

In other words, with respect to the portion of the taxable area and the tax-free area which is clearly divided, we recognize our argument standard and the part of the common area is settled by mixing the area standard and the supply value standard.

According to the above decision, us has received 158,194,00 won from the deduction of the unfair input tax amount from 389,046 won.

2. Matters to be asked;

The calculation method of a common input tax amount is based on the size of the area, if the calculation method is based on the size of the area, and on the value of supply if it is based on the value of supply.

If so, we should calculate the common input tax amount generated from January 1, 1998 in any way.

(a) shall be calculated in accordance with the basis of the size of the

(2) calculated in accordance with the value of supply.

(iii) shall be calculated by the combined formula with the standard of area and value of supply as a result of the determination by the National Tax Service.

It is necessary to ask questions as to what method is appropriate among the above methods.

【Correspondence】

If it is difficult to answer clearly because the contents of return are unclear, and if an entrepreneur concurrently operates a taxable business and a tax-free business, the calculation of the input tax amount related to the tax-free business shall be based on the actual reversion, but the input tax amount related to the common input tax-free business which is commonly used for the taxable business and the tax-free business, and the actual reversion is not distinguishable, shall be calculated in accordance with the ratio of the supply price of the tax-free business to the total supply price: Provided, That in case where there is no supply price for the taxable business and the tax-free business during the relevant taxable period or there is

○ Additional 46015-2676, September 3, 1999

【Reasoning】

1. Summary;

In accordance with Article 106 (1) 6 of the Restriction of Special Taxation Act, Article 106 (6) 14 and (7) of the Enforcement Decree of the same Act and Article 48 (1) of the Enforcement Rule of the same Act, we are exempted from value added tax for the sales of goods (other than ancillary business) manufactured and supplied in our country.

In recent years, the foreign bank's land is exported because of the main export of the foreign country, so that the purchase-value of the raw materials required for the export is reported to waive the tax exemption in accordance with Article 47 (1) of the Enforcement Decree of the Value-Added Tax Act, and the input tax is deducted by applying zero tax rate

When the tax-free business and the tax rate application business (export business) are carried out simultaneously, the legality, etc. of the following improvement methods shall be asked:

Proposal for improvement.

o Common materials required for the tax-free business and taxable business, the reversion of which is certain, shall be disposed of in accordance with the use at the time of shipment from the material warehouse.

? In the case of export business: The value of supply calculated by calculating the value of supply and the purchase value at the time of shipment for the production of exported products at the price included in the purchase value-added tax for raw materials shall be included in the manufacturing account, and the value of the supply shall be included in the manufacturing account, and the value of the surtax shall be included in the provisional payment (purchase value-added tax) and shall be applied for the deduction at the time of

2. Matters to be asked;

- The views of the Administration on the following matters as to the validity and application of the above improvement:

(a) whether it is possible to calculate the purchase value-added tax required for the export business, instead of the tax invoice at the time of purchase of raw materials, by our raw material delivery ledger;

(b) Where the timing of purchase of the raw materials and the timing of use of the raw materials (the time of de facto purchase added tax deduction) vary in the taxable period provided for in Article 3 (1) of the Value-Added Tax Act, whether the input tax amount may be deducted;

【Correspondence】

Where an entrepreneur concurrently operates a taxable business and a tax-free business, the input tax amount related to the tax-free business shall be calculated according to the actual reversion, but the input tax amount related to the tax-free business among the input tax amount (common input tax amount) which is commonly used for the taxable business and the tax-free business and the tax-free business cannot be classified into the actual reversion, shall be calculated by the formula

○ Additional 46015-198, August 14, 1993

Common purchase tax amount related to buildings commonly used for taxable businesses and tax-free businesses shall be calculated in accordance with the ratio of the tax supply price to the total supply price of the taxable period concerned and the tax-free supply price pursuant to Article 61 (1) of the Ordinance of the Ministry of Government Administration and Home Affairs; Provided, That in case of preliminary return, it shall be calculated in accordance with the tax exemption supply price for the total supply price of the preliminary return period

○ Additional Ministry of Finance 22601-26, February 27, 1992

The provisions of Article 61(1) and (4) of the Ordinance of the Ministry of Strategy and Finance and Article 18-2(1) of the Rule apply mutatis mutandis to the case where the corporation acquires depreciable assets to be used in common for taxation and tax-free business for at least two taxable periods, shall be divided in proportion to the common purchase tax amount according to the estimated supply price of each taxable period by applying mutatis mutandis the provisions of Article

○ tax 1235-2351, August 2, 1977; tax 1235-3705, December 24, 1978

Where an entrepreneur concurrently operates a taxable business and a tax-free business, the calculation of the undeductible tax amount among the input tax amounts, for which the actual reversion is unclear, shall be made by calculating the input tax amount related to the tax-free business pursuant to Article 61 (1) of the Enforcement Decree of the Value-Added Tax Act as the total supply price for the relevant preliminary return period and the tax-free supply price for which the relevant preliminary return period belongs, and when the final return falls under the relevant preliminary return period, it shall be made by subtracting the input tax amount which is not deducted at the time of the previous preliminary return after calculating the input tax amount related to the tax-free business calculated pursuant to Article 61 (1) of the Enforcement Decree of the same Act as the total supply price for the relevant taxable period and the

○ Consumption 46015-230, August 5, 1996

In the calculation method of the input tax amount related to the construction of a department store to concurrently operate the taxable businesses and the tax-free businesses, the above ground floor of the department store is expected to be used only for the taxable businesses, and the newly constructed input tax amount related to the portion to be used only for the taxable businesses is deducted in full, and with respect to the newly constructed input tax amount related to the portion to be used for the taxable businesses and the tax-free businesses, it is calculated by the formula under Article 61(1)

○ Consumption 46015-355, December 2, 1996

When an entrepreneur concurrently operating a taxable business and a tax-free business constructs a building to be used for both taxable business and tax-free business, if the part to be used for the taxable business of a newly constructed building and the part to be used for the tax-free business are divided by the area to be used for the taxable business and the tax-free business, the input tax amount shall be calculated in accordance with Article 61 (1) or (4) of the Enforcement Decree of the Value-Added Tax Act, and the tax-free business shall be settled in accordance with Article 61

○ Additional 46015-2284, 1997 October 04, 199

In calculating the amount of common purchase tax related to the construction of a new head office for the purpose of using in the taxable business of value-added tax and the tax-free business, in accordance with the estimated use area ratio under Article 61 (4) 3 of the Enforcement Decree of the Value-Added Tax Act, if the initial usage ratio has been changed due to administrative measures of the administrative agency and other objective reasons before the completion of the building, the relevant common purchase tax shall be calculated based on the ratio from the taxable period in which the date of change falls

○ Additional 46015-1899, August 5, 2000

If an entrepreneur concurrently operates a taxable business (real estate leasing business) and a tax-free business, the input tax amount related to the tax-free business is calculated in accordance with the scheduled use area ratio under Article 61 (4) 3 of the Enforcement Decree of the Value-Added Tax Act, but the factory office is not leased among the buildings for lease, and even if the factory office is established, the input tax amount is calculated in accordance with the ratio of the area to be used (70%