Where a copy of the tax invoice required for the procedure of receiving the credit collection price is submitted to the issuing bank, and a tax invoice is issued.

In the supply of goods or services, the purpose of the tax invoice system is to transfer the value-added tax to the final consumer without double taxation by allowing the supplier to deduct the input tax amount in return for the supply of goods or services. Thus, the phrase “case where a tax invoice is delivered prior to the expiration of the supply period” in Article 9(3) of the Value-Added Tax Act does not include the case where the supplier delivers the authentic copy of the tax invoice to the supplier or the person who is to receive the goods or services, and the case where a copy of the tax invoice is delivered to any third party. Thus, it does not constitute the case where a copy of the tax invoice necessary for the process of receiving the credit collection amount from the bank opening a local letter of credit and submission to the bank.

Article 9 (3) of the Value-Added Tax Act

Supreme Court Decision 83Nu639 delivered on April 10, 1984; 84Nu28 delivered on April 10, 1984

Attorney Jeon Jong-gu, Counsel for the defendant-appellant

Racing Head of the Tax Office

Daegu High Court Decision 82Gu207 delivered on December 8, 1983

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal by the defendant litigant are examined.

Article 9 (3) of the Value-Added Tax Act provides that where a tax invoice is issued under Article 16 of the same Act prior to the arrival of the actual transaction time of goods or services under paragraphs (1) and (2) of the same Article, the time of such issuance shall be deemed the time of supply for the goods or services. However, in the original case of value-added tax, the purpose of the tax invoice system is to enable the parties to the transaction to become taxation data in supplying the goods or services, and to transfer value-added taxes to the final consumer without double taxation. Thus, the case where a tax invoice is delivered before the arrival of the time of supply under Article 9 (3) of the same Act refers to the case where the supplier delivers the original tax invoice to the person who is supplied or is to be supplied with the goods or services, and it does not include the case where a copy of the tax invoice is delivered to a third party (see Supreme Court Decision 83Nu639 delivered on April 10, 1984; 84Nu28 delivered on the part of the issuing bank prior to the receipt of the tax invoice.

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

Justices Kang Young-young (Presiding Justice)