1. The value-added tax on the consignment of food waste to the private sector on November 16, 2018 against the Plaintiff and the Defendant’s preparation on November 16, 2018.

1. Facts of recognition;

A. The Plaintiff is a waste disposal business entity licensed for a domestic waste disposal business under the Wastes Control Act. Since the contract period (the pertinent year) entered into around 2004 the Convention on the Entrustment of Food Waste Disposal (hereinafter “the Convention on the Entrustment of Food Waste Disposal”) with the Plaintiff to dispose of (collection, transportation, recycling, or disposal) food wastes generated within the Defendant’s jurisdiction, the Plaintiff entered into the Agreement on the Entrustment of Food Waste Disposal (hereinafter “the Convention”) every year thereafter, and provided the Defendant with food waste disposal services by repeatedly entering into the same waste disposal agreement as that of the Convention on the Waste Management in 2004, and received the service charges

B. When concluding an agreement on waste treatment each year, the Plaintiff and the Defendant have newly agreed upon the unit price for food waste treatment per ton, and have written the agreed unit price in the agreement using the phrase “the agreed unit price shall be the per ton cost of food waste treatment (the agreed unit price), including value added tax, etc.”

C. 1) On September 2018, Gyeonggi-do, a superior local government of the Defendant, conducted an audit on the Defendant on and around September 2018, ordered the Defendant to the effect that “In light of the unit price clause of the Waste Disposal Convention, the Defendant would have paid the Plaintiff the service cost calculated by applying the unit price, including the value-added tax, to the Plaintiff during the said period despite the Plaintiff’s being a value-added tax-free business entity.” As such, the Defendant ordered the Plaintiff to the effect that “from January 16, 2014, the extinctive prescription of the amount equivalent to the value-added tax that the Defendant paid to the Plaintiff, which was not completed, would be recovered from the Plaintiff.” Accordingly, the Defendant constituted value-added tax, out of the service cost paid by the Defendant to the Plaintiff under the Waste Disposal Convention, from January 16, 2018 to May 2018.