Whether the transfer of a building for business is subject to value added tax upon closure of business;

Transfer of a building offered for the business to discontinue the business shall be subject to value-added tax as the supply of goods related to the business.

Article 6 of the Value-Added Tax Act

The appeal is dismissed.

The costs of appeal are assessed against the Plaintiff.

The grounds of appeal are examined.

According to the relevant provisions of the Enforcement Decree of the Value-Added Tax Act and the Value-Added Tax Act, the supply of goods subject to value-added tax refers to the delivery or transfer of goods by all contractual or legal grounds, and the taxpayer is a person who independently supplies goods or services for a business regardless of whether it is for profit, and thus, in cases where the entrepreneur delivers or transfers goods by contractual or legal grounds, the transaction subject to value-added tax is all the transaction subject to value-added tax unless there is a special provision that the exemption or the imposition of value-added tax is prohibited (see, e.g., Supreme Court Decision 91Nu6221, Jul. 28, 1992). The supply of goods which the entrepreneur continues to engage in the main business and is not a continuous supply of goods, but a contingent or temporary supply related to the main business is subject to taxation. As long as it falls under the supply of goods, etc. under the Value-Added Tax Act, whether the supply is for the continuous maintenance and expansion of business, or for liquidation, reorganization or discontinuance of business (see, etc.).

The lower court determined that the Plaintiff’s transfer of the instant building, which the Plaintiff engaged in the public bath business, was subject to value-added tax under the Value-Added Tax Act as the supply of goods related to the business. In light of the aforementioned legal principles, the lower court’s determination is justifiable, and contrary to what is alleged in the grounds of appeal, there were no errors by misapprehending the legal doctrine on the supply of goods under Article 2 of the Value-Added Tax

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.