National High Court Decision 1995Do331 ( December 30, 1995)
Since it is reasonable to deduct within the scope of the payable tax amount on the transactions for six months, it is judged that the amount to be deducted from the output tax amount of KRW 9,016,897,00,000, among the input tax amount of KRW 15,426,960, is not subject to deduction.
I dismiss the appeal.
1. Summary of the original disposition;
The applicant filed an application for refund of KRW 6,410,063 when filing the final return of value-added tax for the second period of the year of 95 January 25, 95 after the retail portion of the 94.7.1 was converted from a taxable business to a taxable business, which is an exchange that runs a financial and retail business in the Eunpyeong-gu Seoul Metropolitan Government OOOOOOO-dong.
The disposition agency did not notify the applicant of the refund of value-added tax not later than 30 days after the expiration of the final return of value-added tax (1.25 January 25, 95) on the ground that the applicant applied for the refund of value-added tax unfairly after deducting 15,426,960 won from the amount of tax payable for the transaction for six months after converting the retail business into the taxable business.
The applicant filed an appeal on April 24, 95 and filed an appeal on September 30, 95 through a petition for objection and a petition for review on June 29, 95.
2. Opinions of the applicant and the Commissioner of the National Tax Service;
Article 17(1)1 of the Value-Added Tax Act includes not only the amount of tax on the supply of the goods and services that were already used for input tax deduction, but also the amount of tax on the supply of the goods and services that are to be used for such input tax deduction. This is a kind of tax support system to prevent a business operator from any unnecessary financial pressure by granting early refund of the value-added tax to be borne by a general taxable business operator at the time of purchase. In the case of a requesting corporation, at the present time of July 1, 94, converted into a taxable business by the amendment of the Value-Added Tax Act, the general taxable business operator does not differ from the case where a new business commences. Therefore, the inventory assets currently held as of July 1, 94
(b) Opinions of the Commissioner of the National Tax Service;
According to the Ordinance of the Ministry of Finance and Economy consumption 46015-35 (2.7) of the Ministry of Finance and Economy, in case where a tax-free business is converted from July 1, 94 to a taxable business, the amount of stock purchase tax on the goods, etc. acquired in connection with the pertinent taxable business shall be interpreted to be deducted within the limit of the amount of tax payable for the transaction for six months after July 1, 94. Thus, the disposition authority does not err by deeming the applicant’s application for refund against the amount
3. Hearing and determination
A. Key issue
This case is a dispute in order to determine whether there is anO to deduct the input tax amount in excess of the payable tax amount for six months when converting from a tax-free business to a taxable business under the Value-Added Tax Act.
(b) Related statutes;
(1) Article 17(1) of the Value-Added Tax Act provides that the amount of value-added tax payable by an entrepreneur to the Government (hereinafter “paid tax amount”) shall be the amount calculated by deducting the input tax amount from the output tax amount on the goods and services supplied by him/her. In the proviso, the input tax amount exceeding
(2) In full view of Article 12(1)17 of the same Act and Article 38(1)5 and (2) of the Enforcement Decree of the same Act (amended by December 31, 93), the goods or services supplied by the State, local governments, and local governments associations and the goods or services supplied by the government agencies such as cooperatives and the National Federation under the OO Cooperatives Act, which are the goods or services exempted from value-added tax, shall be the goods or services supplied by the organizations, etc. for their own purpose and for the projects as prescribed by the Ordinance of the Ministry of Finance,
(3) Article 11-5 of the Enforcement Rule of the same Act (amended by Presidential Decree No. 1957, Dec. 31, 93) and subparagraph 5 of attached Table 5 provides that the scope of government agency agency business under the O Cooperatives Act and the National Federation under the name of organization shall be limited to the business stipulated in Articles 58, 125, and 153 of the OO Cooperatives Act as the scope of tax-free business, and the proviso excludes the case of carrying on retail business in the Seoul Special Metropolitan City, Metropolitan City, or Si area. Meanwhile, Article 11-5 of the Addenda of the Enforcement Rule of the same Act (amended by Ordinance of the Ministry of Finance and Economy No. 1957, Dec. 31, 93) provides that the scope of government agency business under subparagraph 5 of attached Table 11-5 shall be converted from a taxable business entity or added to a taxable business, and Article 11-5 (1) provides that the person who intends to receive inventory tax from the head of the tax office for 16 months after the enforcement date of this Rule.
C. Facts and determination
(1) Total sales tax amount.
(2) Total purchase tax amount (excluding the inventory purchase tax amount).
(3) The amount of net payment (1-2).
(4) The amount of inventory purchase tax.
: 15,426,960 won
(1) According to the above relevant laws and regulations, when a tax-free business is converted from a taxable business to a taxable business, the input tax amount for the inventory goods shall be deducted to the extent of the payable tax amount for the transaction for six months (sales tax amount - the current input tax amount). In the case of the requesting corporation, the details of the value-added tax for
(2) Until now, the value-added tax has been exempted for retail businesses of the O,O,O,O, and OOOOO, but it has been required to impose value-added tax since July 1, 94 due to competition with the private economic sector, etc. The deduction of the stock purchase tax amount for the stock goods related to the pertinent tax-free business shall be made by deducting the same amount of the value-added tax from the amount of the tax payable for the transaction for 6 months after the conversion of taxation, but it is interpreted to the purport of the above statutes that it would not be deducted from the amount of the tax payable for the relevant tax-free business and that the excess amount of the stock purchase tax would not be deducted (O).
Therefore, it is not intended to fully exclude the problem of double-value added tax liability for the transaction for six months, but it is reasonable to make the deduction within the scope of the payable tax amount for the transaction for six months in accordance with the above related laws and regulations. Therefore, in this case, it is judged that the deduction is made from the output tax amount of 9,016,897,00 won which is to be paid for the stock purchase tax amount of 15,426,960 won, and the remainder is not subject to the deduction.
Therefore, this case's petition is without merit, so it is decided as ordered by Article 81 and Article 65 (1) 2 of the Framework Act on National Taxes.