Appropriateness of a disposition that deducts input tax amounts before business registration

The decision that the initial disposition that the date of transfer of ownership ( June 23, 2004), which is not the date of actual payment (2004 June 30, 2004) shall be deemed the time of supply for the goods, does not fall within 20 days from the date of application for business registration ( July 19, 2004), and thus, is improper.

Article 17 (2) 5 of the Value-Added Tax Act (Non-deduction of input tax amount before business registration)

1. The disposition that the Defendant imposed value-added tax of KRW 23,839,590 on the Plaintiff on October 4, 2005 shall be revoked.

2. The costs of the lawsuit are assessed against the defendant.

The same shall apply to the order.

1. On June 10, 200, the Plaintiff purchased 259,681,00 won (including value-added tax 19,681,00 won) at 03 and 204 ○○○○○○○○○, 15-24, Dong, 15-24 (hereinafter “instant real estate”) from Kim○-do, Kim○-do, 200 on June 10, 204, and completed the registration of ownership transfer on June 23, 2004. On July 19, 2004, the Plaintiff filed a final return of value-added tax on July 24, 2004, filed an application for registration of business with the Plaintiff for the final return of value-added tax amounting to 19,681,00 won (hereinafter “the instant real estate”). On the grounds that the Plaintiff’s disposal of the instant real estate from the output tax amount to 300,500 won (hereinafter “the instant input tax amount”) was deducted on July 24, 2005, 2009.

2. The proviso of Article 17 (2) 5 of the former Value-Added Tax Act (amended by Act No. 7876, Mar. 24, 2006; hereinafter the same) and Article 60 (9) of the Enforcement Decree of the Value-Added Tax Act provide that the input tax amount shall be deducted from the output tax amount for not more than 20 days retroactively from the date of application for business registration. Article 9 (1) 2 of the same Act provides that "if the transfer of goods is not necessary, the time the goods are made available for use" with regard to the time of supply for the goods, which means the time when the goods are actually available for use, so the disposal of the goods is the time of delivery of the real estate. Accordingly, Article 17 (2) 5 of the former Value-Added Tax Act and Article 60 (9) of the Enforcement Decree of the Value-Added Tax Act provides that the real estate of this case shall be deducted from the output tax amount for not more than 200 days to 300 days,04.

3. If so, the plaintiff's claim is reasonable, and it is so decided as per Disposition.