Whether secondary management services are duty-free services or taxation services

Services provided by a secondary manager who is not a medical person shall not be deemed as medical health services subject to value-added tax exemption.

Article 12 of the Value-Added Tax Act

Article 29 of the Enforcement Decree of the Value-Added Tax Act

1. All of the plaintiff's claims are dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

The Defendant’s imposition of value-added tax of KRW 3,161,020 for the first term of 2003 against the Plaintiff on May 1, 2006, KRW 3,83,380 for the second term of 203, KRW 3,725,560 for the second term of 204, KRW 3,576,90 for the second term of 2004, and KRW 3,201,820 for the first term of 205, and KRW 2,163,80 for the second term of 205.

1. Details of disposition;

A. The Plaintiff, as a medical specialist who operates the ○○○○○○○ Head (hereinafter referred to as the “instant member”), established a separate skin management room in the said member, and then employed the assistant manager to ensure the customer’s skin management.

B. The director of ○○○ Regional Tax Office conducted a tax investigation on the Plaintiff, and among the second period from 1 to 2005, 143,536,359 won (21,027,272 won, 2032 won, 1, 2003, 27,509 won, 27,509, 26,727,2727,2727,090 won, 204, 2004, 26,727,2727, 202 won, 205, 24, 363 won, 205, 217,609,09, and 209,000 won, 204, 2004, 206, 2005, 205, 17,609,09,00 won, which is the amount of medical care service.

C. On May 1, 2006, the Defendant issued a disposition to correct value-added tax amounting to KRW 3,161,020 for the first period of January 2003, KRW 3,725,560 for the second period of February 2003, KRW 13,83,380 for the second period of 204, KRW 3,576,90 for the second period of 2004, KRW 3,201,820 for the first period of 205, and KRW 2,163,80 for the second period of 205 (hereinafter “instant disposition”).

[Ground of recognition] Facts without dispute, Gap evidence 1-6, Eul evidence 1-6, Eul evidence 1-6, the purport of the whole pleadings

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

The service of this case is a medical care that is distinct from pure commercial activity, and is subject to VAT exemption, but the disposition of this case imposing value-added tax on the provision of the service of this case is unlawful, and even if the service of this case is not a medical health service of this case or an essential ancillary service, the doctor's diagnosis, diagnosis and prescription included in the service of this case are at least medical health service of this case, so the value-added tax on this part should be revoked.

B. Relevant statutes

○ Tax exemption Article 12 of the Value-Added Tax Act

(1) The supply of goods or services falling under any of the following subparagraphs shall be exempted from value-added taxes:

4. Medical and health services (including veterinary services) as prescribed by the Presidential Decree, and blood;

(3) The supply of goods or services essential for the supply of goods or services exempted under paragraph (1) shall be deemed to be included in the scope of duty-free goods or services.

(5) Necessary matters concerning the scope of goods or services under paragraphs (1) and (2) shall be prescribed by Presidential Decree.

0 Scope of health services under Article 29 of the Enforcement Decree of the Tax Act

Medical and health services as provided in Article 12 (1) 4 of the Act shall be those as provided in the following subparagraphs (including those provided by a medical institution or a person who opens a veterinary hospital pursuant to the Medical Service Act or the Veterinarians Act):

1. Services provided by a medical doctor, dentist, oriental medical doctor, midwife, or nurse prescribed by the Medical Service Act;

2. Services provided by a charnel, bed, or bedas defined in the Medical Service Act;

3. Services provided by a clinical path, radiation technician, physical therapy, occupational therapy, dental technician or dental sanitary technician as prescribed by the Medical Technicians, etc. Act;

4. to 12. (Omission)

(c) Fact of recognition;

(1) The Plaintiff is providing secondary management services by establishing a secondary management office in the instant member and employing the secondary management officer.

(2) The instant member prepares a “in-house nuclear motor vehicle set in detail the items to be treated to the customers who first wish to receive medical treatment, the medical records, past records, family records, and the side effects of the experience at another hospital.”

(3) As above, the Plaintiff heard the status of the skin from the customer who prepared the internal motive straw, diagnosed the skin through a diagnosis, diagnosis, promotion, etc., and explain the cause and method of treatment, and specifically prescribe the treatment methods.

(4) In the skin management office, the skin manager is engaged in secondary management, such as scam, scam and pressure in the scam, scam and scam, scaming operations, radroping operations, and scambling operations, as requested by customers who wish to maintain healthy and scenic skin even if there is no scambling disease or scam, or in need of medical treatment. The skin manager is engaged in secondary management, such as scam (scam, skin scam, skin scam, skin scamscam, skin scamscam, skin scamscam, skin scamscam, skin scamscam, etc.).

(5) The Defendant: (a) rendered the instant disposition on the part of the Plaintiff’s services provided by the instant member to customers, except for the areas requiring specialized skills of nurses; and (b) only the secondary management services provided by the secondary manager in the secondary management room, subject to the instant disposition.

(6) The Guideline on Unused-Medical Practice provides for the criteria for classification by subject of each act of cosmetic-medical treatment as follows:

Class 1:

Medical practice to be performed by a physician within a medical institution where a person specialized in the assessment is stationed;

The actual medical practice which requires high level medical knowledge and learning from among acts using medical appliances (medical equipment, instruments and appliances), medicine, etc. for the purpose of treating them.

The substance of the medical practice, which is an act affecting the structure and function of the respondent, may result in dynamic damage to the skin and a certificate of merger when the improper procedure is conducted.

Grade 2:

Medical practices for which nurses may assist in medical procedures for a part of the whole course under the direction and supervision of a doctor after the diagnosis of a doctor within a medical institution where a person subject to imposition is stationed;

The substance of the medical practice is not likely to cause any dynamic change to the skin, but the practice requires medical knowledge and skill.

Grade 3:

Medical practices related to medical treatment employed by a medical institution under the direction and supervision of a doctor after the diagnosis of a doctor within a medical institution where a medical specialist subject to imposition is stationed, and medical practices for which a qualified holder may assist in medical procedures for part of the whole process.

The actual contents of the medical practice, which is less likely to cause serious changes in skin or side effects, may assist a person with basic medical care or skin-related knowledge in the practice.

outer grade:

pure beauty service

The actual contents of the services shall be observed and analyzed, other than diseases, and services provided using cosmetics materials, cosmetics equipment, appliances, etc.

[Reasons for Recognition] Facts without dispute, fact-finding results on the President of the Korea Science Commission, the purport of the whole pleadings

D. Determination

(1) Article 12 (1) 4 of the Value-Added Tax Act provides that the value-added tax shall be exempted for medical and health services prescribed by the Presidential Decree. Article 12 (3) of the same Act provides that the supply of goods or services that are essentially ancillary to the supply of goods or services exempt under paragraph (1) of the same Article shall be included in the supply of goods or services. Article 29 of the Enforcement Decree of the same Act provides that the scope of medical and health services shall be provided by a doctor, dentist, oriental medical doctor, midwife or nurse under the Medical Service Act (Article 29 (1) 1), "services provided by a doctor, dentist, oriental medical doctor, midwife, or massage under the Medical Service Act" (Article 12 (1) 2), and "services provided by a clinical path, radiation doctor, physical therapy, occupational therapy, dental technician, dental technician, or dental sanitarian" (Article 3).

However, even though the service of this case is an act conducted under the direction and supervision of the plaintiff who is a medical specialist, it is provided by the secondary manager who is not a medical personnel under Article 29 of the Enforcement Decree of the Medical Service Act, and its main purpose is not the treatment or prevention of disease, and therefore, it does not constitute medical health service provided by medical personnel such as doctors under the Medical Service Act, etc., and it does not constitute medical health service provided by medical personnel such as the medical doctor under the Medical Service Act, etc., and the license holder and qualification holder related to medical care who can assist the doctor to perform part of the whole course under the direction and supervision of a medical doctor under the direction and supervision of a medical doctor. The license holder refers only to medical personnel, medical oil business operator, massage and medical technicians under the Medical Service Act or the Medical Technicians, etc. Act, and the secondary manager does not include this.

(2) According to the above facts, the instant service is not carried out at all imposed members, and it cannot be deemed as services essential for the medical health service even if it is conducted in parallel with the medical health service for the purpose of relaxing side effects and facilitating recovery, as it is an item generally carried out or may be carried out in the general skin management room.

(3) In addition, even though the services performed in the general department management office, which is a taxable object of value-added tax, and the purpose and process of pursuing them are almost similar, the exemption of value-added tax on the grounds of the secondary management services performed within a medical institution, such as the instant member, is not consistent with the taxation-oriented balance, and it does not comply with the legislative intent of allowing the exemption of value-added tax on the medical services provided by medical personnel under the Medical Service Act for the promotion of national health.

(4) As seen earlier, the instant disposition was imposed only on the cost for the service provided by the skin manager in the skin management room within the instant clinic, and the Plaintiff’s medical expenses for the diagnosis, diagnosis, and prescription were collected from the National Health Insurance Corporation or the medical personnel pursuant to the National Health Insurance Act’s benefits or non-benefit items. Thus, it cannot be deemed that the instant service included the medical health service provided by the Plaintiff.

(5) Therefore, it cannot be said that the instant service constitutes a medical health service or an essential accompanying service of medical health service, which is stipulated as value-added tax-free service under Article 12(1) or (3) of the Value-Added Tax Act.

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit, and it is so decided as per Disposition.

[Seoul High Court 2007Nu34301 (Law No. 23, 2008)]

1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

The judgment of the first instance is revoked, and each disposition of KRW 3,161,020 for the first term of 203, value-added tax imposed on the plaintiff on May 1, 2006, KRW 3,725,560 for the second term of 2003, KRW 3,83,380 for the first term of 204, KRW 3,576,90 for the second term of 204, KRW 3,201,820 for the first term of 205, KRW 2,163,80 for the second term of 205, and KRW 2,800 for the second term of 205.

1. Quotation of judgment of the first instance;

The reasoning of the judgment of this court is as stated in the judgment of the court of first instance, with the exception that "the defendant separates and extracts each part of the parts in which doctors, nurses, and secondary managers are involved by each item of management based on the data submitted by the plaintiff, based on the data submitted by the plaintiff, and then adds "the part in which the secondary manager was involved is calculated as the amount of taxable income of this case by reflecting a significant portion of the plaintiff's opinion as well as the part in which the secondary manager was involved as the amount of taxable income of this case". Thus, this is cited by the main text of Article 8

2. Conclusion

Therefore, the judgment of the first instance court with the same conclusion is legitimate, and the plaintiff's appeal is dismissed as it is without merit. It is so decided as per Disposition.