The costs of appeal are assessed against the defendant.

1.(a)

Before the amendment by Act No. 9915 of January 1, 2010 of the former Value-Added Tax Act

Value-Added Tax Act (hereinafter “Value-Added Tax Act”).

Article 1(1)1, (3), and (5) of the former Enforcement Decree of the Value-Added Tax Act (amended by Presidential Decree No. 22578, Dec. 30, 2010)

A. The Enforcement Decree of the Value-Added Tax Act

Article 2(1) provides for services subject to value-added tax as “all services and other acts falling under any of the following subparagraphs” and subparagraph 2 of Article 2 provides for the restaurant business:

In addition, Article 2 (3) of the Enforcement Decree of the Value-Added Tax Act provides that "Except as otherwise provided in this Decree, the business classification under paragraph (1) shall be based on the Korean Standard Industrial Classification as of the first day of the taxable period publicly announced by the Commissioner of the Statistics Korea, and any business similar to the business under paragraph (1) shall be deemed included in the business under the same paragraph, notwithstanding the Korean Standard Industrial Classification." The Korea Standard Industrial Classification defines that "the business of a restaurant, restaurant, simple restaurant, camera, tea store, liquor store, etc. that provides food cooked and cooked in the premises and independently operates an independent restaurant business."

Meanwhile, Article 12(1)1 of the Value-Added Tax Act includes agricultural products, livestock products, fishery products, and forest products for food not processed as one of the goods exempt from the value-added tax.

Article 28 (1) of the Enforcement Decree of the Value-Added Tax Act provides for agricultural products, livestock products, fishery products, and forest products not used for food produced in Korea, and Article 12 (1) 1 of the Value-Added Tax Act is not processed.