2. The costs of lawsuit shall be borne by the Plaintiff.

Cheong-gu Office

The Defendant’s disposition rejecting the Plaintiff’s claim for rectification of KRW 3,869,593, KRW 6,871,443, and KRW 26,846,260 in total, KRW 16,105,224 in 2016, which was imposed on the Plaintiff on June 22, 2017.

A. On February 10, 2015, the Plaintiff is a corporation established for the purpose of providing services, park management and operation services, etc., using 175 Gyeonggi-do ○○○-gun ○○○○○-gun as its head office. The Plaintiff is operating a plant center, etc. (hereinafter “instant business establishment”) with the trade name “○○○○” at the above location. The Plaintiff is providing beverages, such as coffee or liquor, to visitors who visit the instant business establishment separately after receiving admission fees of KRW 7,00 and KRW 5,000 from adults who visit the instant business establishment.

B. The Plaintiff filed a declaration of exemption from value-added tax for the first year of 2015 on the ground that the entrance fee of the instant business establishment constitutes a subject of value-added tax exemption, and did not file a sales declaration for the second year of 2015 on the second year of 2015. However, around August 2015, the Defendant filed a revised declaration on April 11, 2016 on the first year value-added tax for the first year of 2015, and filed a revised declaration for the second year of 2015 on the second year of 2016 and the second year of 2016 on the second year of 2016.

C. On April 21, 2017, the Plaintiff filed a revised return on KRW 3,869,593 for the first term portion in 2015, KRW 32,736,517 for the second term portion in 2015, KRW 6,871,43 for the first term portion in 2016, KRW 16,105,224 for the second term portion in 2016, and filed a revised return on KRW 7,637,185 for the first term portion in 2016 to the effect that the service provided to the Defendant through the instant place of business constitutes a subject-matter of value-added tax exemption. However, on June 22, 2017, the Defendant rejected the Defendant’s request for the correction of the first term portion in 2015, KRW 16 for the first term portion in 2016, and KRW 2016 for the second term portion in 2016 (hereinafter “the Defendant”).

D. The Plaintiff appealed and filed an appeal with the Tax Tribunal on March 5, 2018 on September 22, 2017. The Tax Tribunal dismissed the appeal on the second period portion in July 31, 2018 and the first period in July 2015, 2016, and made a decision to dismiss the remainder of the appeal on the instant disposition.

[Ground of recognition] Facts without dispute, Gap evidence Nos. 1 through 4, Eul evidence No. 2, the purport of the whole pleadings

2. The plaintiff's assertion

A. The instant workplace is a place where 374 species of plants are raised, displayed, and diverse plant species are disseminated to visitors. Thus, entrance fees of the instant workplace constitute an object of tax exemption under Article 26(1)17 of the former Value-Added Tax Act (amended by Act No. 16101, Dec. 31, 2018; hereinafter “Value-Added Tax Act”) and thus, the instant disposition issued on a different premise is unlawful, and thus, should be revoked.

B. Even if the total amount of entrance fees of the instant place of business cannot be deemed as admission fees of a plant source under Article 26(1)17 of the Value-Added Tax Act, value-added tax should be exempted on the remainder of entrance fees, excluding the amount equivalent to the cost of providing beverages.

3. Whether the instant disposition is lawful

(a) Relevant statutes;

As shown in the attached Form.

B. Determination

Ultimately, the issues of the instant case are whether the instant workplace can be seen as a “vegetable source as stipulated in the relevant laws and regulations.”

In full view of the following circumstances acknowledged as a whole in the statements and images of Gap evidence 5 through 7 and Eul evidence 2, the workplace of this case does not constitute a vegetable source designated as a place subject to tax exemption under Article 26(1)17 of the Value-Added Tax Act. Therefore, the plaintiff's assertion on different premise is without merit (this case's establishment does not constitute a vegetable source under Article 26(1)17 of the Value-Added Tax Act, as long as it does not constitute a vegetable source under Article 26(1)17 of the Value-Added Tax Act).

1) Article 2 Subparag. 1 and 2 of the Value-Added Tax Act, Article 4(1) of the Enforcement Decree of the Value-Added Tax Act provides that the classification of the business that supplies goods or services shall, in principle, be based on the Korean Standard Industrial Classification publicly notified by the Commissioner of the Statistics Korea. According to the 9th Korean Standard Industrial Classification (amended by Statistics Korea Notice No. 2017-13, Jan. 13, 2017) that applies at the time of the commencement date of each of the taxable periods of value-added tax (amended by Statistics Korea Notice No. 2017-13, Jan. 13, 2017), "vegetable and animal board operation business" refers to "industrial activities preserving and managing plants and animals at certain facilities so that they can be seen as "one-day," and the operation of a veterinary hall which sells ornamental language shall be excluded. In addition, Article 26(1)17 of the Value-Added Tax Act provides for the place of exhibition, such as library, science museum, museum, animal board, and other place prescribed by Presidential Decree.

In full view of the contents and form of the laws and regulations on objects of VAT exemption, and the division of business according to the Korean Standard Industrial Classification, it is reasonable to view the plant source under Article 26(1)17 of the Value-Added Tax Act to mean a place with the main purpose of disseminating knowledge through the introduction of plants.

2) However, the instant business establishment does not have all facilities that can preserve and manage plants, such as land paper rooms, seed packings, managers, and laboratories. On the other hand, there exist natural landscape gardening facilities such as gardening in the instant business establishment, and various plants are planted, but only those plants are provided for the main purpose of photographing, rest, etc. along with artificial landscape gardening facilities, such as sperm, propelling towers, and wind trains. Furthermore, the instant business establishment has convenience facilities, such as coffee and rink sales stores, and the admission fees paid by visitors to the instant business establishment include the cost of drinking water, such as coffee, offered in the instant car page.

In light of the facility and operation form of the instant plant, it is difficult to deem that the instant plant serves to preserve and manage plants or to disseminate relevant knowledge.

3) On February 13, 2015, the Plaintiff also registered the business of wholesale, retail, category, business with fluencing, landscaped, etc. The instant place of business has been leased to the Plaintiff at a fee, etc. This indicates that the instant place of business has mainly been providing goods or services for other purposes than the vegetable.

4. Conclusion

Therefore, the plaintiff's claim is without merit, and it is dismissed. It is so decided as per Disposition.

Relevant statutes

/ Value-Added Tax Act (Amended by Act No. 16101, Dec. 31, 2018)

Article 2 (Definitions)

The terms used in this Act shall be defined as follows:

1. The term "goods" means goods and rights which have property value. Necessary matters concerning the scope of things and rights shall be prescribed by Presidential Decree;

2. The term "services" means all services and activities, other than goods, that have property value. Necessary matters concerning the scope of services shall be prescribed by Presidential Decree;

7. The term "tax-free business" means any business that supplies goods or services exempt from value-added tax;

Article 26 (Exemption from Supply of Goods or Services)

(1) The supply of the following goods or services shall be exempted from value-added taxes:

17. Admission to libraries, science museums, museums, art galleries, zoological or botanical gardens, or other places prescribed by Presidential Decree;

【Enforcement Decree of the Value-Added Tax Act

Article 4 (Classification of Services)

(1) The classification of business supplying goods or services shall be in accordance with the Korean Standard Industrial Classification as of the starting date of the relevant taxable period publicly announced by the Commissioner of the Statistics Korea

(2) Where services are supplied, projects similar to those under Article 3 (1) shall be deemed included in the projects under the Korean Standard Industrial Classification, notwithstanding the same paragraph.

Article 44 (Scope of Admission to Tax-Free Places)

"Places prescribed by Presidential Decree" in Article 26 (1) 17 of the Act means the following places:

1. Places for introducing folklore and cultural resources;

2. The War Commemoration Service Association established under the War Commemorative Association Act.

director Korean Standard Industrial Classification (Amended by Presidential Decree No. 2017-13, Jan. 13, 2017)

90231 Zoos and Zoos operations

Industrial activities that preserve and manage plants and animals for viewing by the general public in certain facilities, including the operation of a aquarium for viewing purposes.

Exclusions from the retail of ornamental fishing (47852) shall be completed in the operation of a water testing room (47852).