Seoul Administrative Court-2015-Gu Partnership-5853 (Law No. 15, 07.03)

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Where a business operator who is not the operator of a golf course transfers golf membership, whether the security deposit which can be refunded is included in the value of value.

Since the claim for the return of the security deposit for admission shall be deemed to have become a part of golf membership in fact, it shall be different from the ordinary monetary claim. Therefore, in the event that golf membership sold to another person by a general business operator, the security deposit that can be refunded is included in the value-added tax base, and the value-added tax

Article 1 of the Value-Added Tax Act and Article 13 of the Value-Added Tax Act

2015Nu5291 Revocation of Disposition Rejecting Value-Added Tax Correction

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Seoul Administrative Court Decision 2015Guhap5853 decided July 3, 2015

November 17, 2015

December 15, 2015

1. The plaintiff's appeal is dismissed.

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

The judgment of the first instance is revoked, and the defendant claims for the correction of value-added tax against the plaintiff on August 28, 2014.

The decision that the rejection disposition is revoked in entirety.

1. Quotation of judgment of the first instance;

The reason why the court is to use in this case is as stated in the judgment of the court of first instance, except for the addition to the second instance following the judgment on the matters additionally asserted by the plaintiff in the trial. Thus, it shall be cited in accordance with Article 8(2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act

2. Judgment on the matters that the plaintiff asserts additionally in the trial

A. The purport of the plaintiff's assertion

Article 20(11) of the Enforcement Decree of the Local Tax Act provides that "the date on which the period of golf membership begins shall be deemed the acquisition date when the period of golf membership begins," and even if there is no provision in the above, where a golf membership agreement with a golf club operator should be concluded at all times after the expiration of the period of validity of golf membership, if a person who acquired a golf membership enters into a contract with a golf club operator to extend the period of validity of golf membership after the expiration of the period of validity of golf membership, the amount equivalent to a security deposit shall not be included in the base of the value-added tax pursuant to the general rule of the Value-Added Tax Act. If the amount of security deposit is included in the base of the value-added tax, the amount equivalent to a security deposit shall be excluded from the base of the value-added tax.

B. Determination

Since the term of validity of golf membership is extended according to a contract entered into with a golf club operator separately from a person who acquired golf membership, the relevant tax items or tax base, etc. should be determined accordingly. However, in cases where golf membership is sold as a membership trader as the Plaintiff, as seen earlier, it is different from the transfer of goods or services supplied by a golf club operator due to the extension of the term of validity of the existing golf membership, and thus, the Plaintiff’s assertion on a different premise is difficult to accept without further determination.

3. Conclusion

Therefore, the judgment of the first instance court is legitimate, and the plaintiff's appeal is dismissed as it is without merit. It is so decided as per Disposition.