Electronic Taxation Division-233 ( October 29, 2009)

Addition

If the amount deducted from the issuance of a credit card sales slip exceeds the payable tax amount before deducting the relevant amount, the portion in excess shall be deemed nonexistent.

If an individual entrepreneur who runs oil retail business supplies goods on which value-added tax is levied, and issues credit card sales slip under the Specialized Credit Finance Business Act at the time of issuing a tax invoice under Article 16 (1) of the Value-Added Tax Act, the amount equivalent to 1/100 of the amount of such tax (the limit of five million won per year) shall be deducted from the amount of tax payable. In such cases, if the deducted amount exceeds the amount of tax payable prior to the deduction of the relevant amount [referring to the amount of tax calculated by deducting or adding the amount of tax to be deducted or added under the Value-Added Tax Act, the Framework Act on National Taxes, and the Restriction of Special Taxation Act (excluding penalty tax under Article 22 of this Act and Articles 47-2 through 47-5 of the Framework Act on National Taxes; if the relevant amount of

Article 32-2 of the Value-Added Tax Act 【Tax Credit Card, etc.】

1. A summary of the contents of inquiry;

Whether credit card sales slip and other issue taxes are deducted

2. Materials on the contents of questioning;

(a) related tax laws and regulations (law, enforcement decree, enforcement rule, basic rules);

○ Tax Credit Card, etc. 【Tax Credit Card, etc.】

(1) Where an entrepreneur prescribed by Presidential Decree (excluding corporations) supplies any goods or services on which value-added tax is levied, and issues credit card sales slips under the Specialized Credit Finance Business Act, cash receipts under the provisions of Article 126-3 of the Restriction of Special Taxation Act, or other similar ones prescribed by Presidential Decree (hereafter referred to as "credit card sales slip, etc." in this Article) at the time of issuing tax invoices under Article 16 (1), or receives payments through electronic settlement means prescribed by Presidential Decree, an amount equivalent to 1/100 (2/100 in cases of a simplified taxable person operating a restaurant business or lodging business) of the relevant issue amount or settlement amount (limited to five million won a year) shall be deducted from the payable tax amount. In such cases, the amount of deduction shall be deemed to exceed the payable tax amount [excluding the amount of additional tax under the provisions of this Act, the Framework Act on National Taxes, and the Restriction of Special Taxation Act, and Articles 47-2 through 47-5 of the Framework Act on National Taxes] before the relevant deduction of tax amount.

(b) Relevant established rules (established rules, interpretation cases, review, adjudication, judicial precedents);

4. Value-added tax and 1817, 208.07

【Is to deduct the amount of credit card sales slip issued in excess of the payable amount】

【Summary of Credit card sales slip issuance】 When the amount of tax credit exceeds the amount of tax before deducting the corresponding amount, it shall be deemed that there is no portion exceeding the above amount.

【The supply of goods on which value-added tax is levied, and credit card sales slips under the Specialized Credit Financial Business Act or cash receipts under Article 126-3 of the Restriction of Special Taxation Act are issued at the time of issuance of tax invoices under Article 16 (1) of the Value-Added Tax Act or cash receipts under Article 126-3 of the Restriction of Special Taxation Act are settled by electronic means of payment under Article 80 (3) of the Enforcement Decree of the Value-Added Tax Act, the amount equivalent to 1/100 of the issue amount or settlement amount (limited to five million won per

Provided, That in such cases, if the amount of deduction exceeds the payable tax prior to the deduction of the relevant amount [referring to the tax amount calculated by deducting or adding the amount of tax (excluding the additional tax under Article 22 and Articles 47-2 through 47-5 of the Framework Act on National Taxes) to be deducted or added under the Value-Added Tax Act, the Framework Act on National Taxes, and the Restriction of Special Taxation Act, and if the relevant tax amount calculated is a negative, it shall be deemed zero], the excess shall be deemed nonexistent.

Administration document, Internet, visiting consultation 3 teams-1592, 2004.06

【Deduction of credit card sales slip issued tax amount】

[Summary of Credit Card sales slip] Amount of deduction from credit card sales slip issued can be deducted only within the limit of five million won per year.

In case where an individual entrepreneur, who runs a new retail business, supplies goods or services subject to the imposition of value-added tax, and issues credit card sales slips under the Specialized Credit Financial Business Act at the time of issuing tax invoices under Article 16 (1), cash receipts under Article 126-3 of the Restriction of Special Taxation Act, or receives payments by electronic settlement means as prescribed by the Presidential Decree, the amount equivalent to 1/100 of the relevant issue amount or settlement amount (limited to five million won per year) shall be deducted from the

In this case, if the amount of the deduction exceeds the payable tax amount prior to the deduction of the relevant amount (not including the additional tax as prescribed in Article 22) (the tax amount calculated by deducting or adding the tax amount to be deducted or added under the Value-Added Tax Act and the Restriction of Special Taxation Act, and if the relevant tax amount is of a negative figure, it shall be considered as zero), the exceeding part shall be considered