The meaning of "person who supplies goods or services independently for business" in Article 2 (1) of the Value-Added Tax Act.

Since value-added tax is a tax on the value added at each stage of production and distribution, a person who supplies goods or services independently from a business under Article 2(1) of the Value-Added Tax Act, which provides for a taxpayer of value-added tax, should make it clear that the supplier of goods or services is a person who continuously and repeatedly supplies goods or services in the form of business to an extent that the value-added tax can be created, and the supply of goods or services subject to taxation is limited to the supply of goods or services produced from such business and is not subject to taxation.

Article 2 (1) of the Value-Added Tax Act

Supreme Court Decision 84Nu629 Decided December 16, 1984, Supreme Court Decision 86Nu216 Decided September 9, 1986

[Judgment of the court below]

The director of the tax office.

Seoul High Court Decision 85Gu1151 delivered on June 11, 1986

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal by the defendant litigant are examined.

Since value-added tax is a tax on the value added at each stage of production and distribution, a person who supplies goods or services independently from a business under Article 2 (1) of the Value-Added Tax Act, which provides for a taxpayer of value-added tax, should make it clear that the supplier of goods or services is the supplier of goods or services with a continuous and repeated intent in accordance with the business form to create the value-added tax, and the supply of goods or services subject to taxation shall be limited to the supply of goods or services produced in such business and the supply of goods or services that are not produced or not produced in the business shall not be subject to taxation.

However, according to the reasoning of the judgment below in this case, the court below found that the plaintiff is a business operator engaged in child uniforms manufacturing, and the non-party 1, the husband of the plaintiff, is a business operator engaged in the consignment manufacturing, regardless of the above business, and the plaintiff and the non-party 1 purchased the land and the machinery installed in the company's factory located in Gyeonggi-gun ( Address omitted) on May 11, 1984 from the Korea Assets Management Corporation for the purpose of increasing property regardless of the above business, and sold the machinery of which the automobile parts were produced to non-party 2 on May 31, 1984, and if the transfer circumstances of the machinery of this case are as above, even if the plaintiff is an independent supplier of goods, the transfer of the machinery of this case was done without relation to the business, and therefore, the plaintiff has no liability to pay value-added tax. Accordingly, the court below's findings of fact and its decision are justified, and there is no reason to find any misapprehension of legal principles as to the taxpayer for value-added tax and any other permit.

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.

Justices Yoon Il-young (Presiding Justice)