In order to obtain export financing, a copy of the tax invoice shall be submitted to the financial institution and issued

With respect to value-added tax, the tax invoice becomes taxation data between the parties to the transaction in supplying tax or services, while the purpose is to enable the taxable business entity to deduct the input tax amount and transfer the tax amount to the final consumer without double taxation. Thus, the "tax invoice is to be issued prior to the arrival of the supply period" under Article 9 (3) of the above Act, which is interpreted as being delivered by the supplier to the person who is supplied with the tax (including his/her agent, employee) or the person who is supplied with the tax, and a copy of the tax invoice under the procedure for receiving the export financing from the L/C issuing bank and submit it to the financial institution, shall not constitute the issuance of the tax invoice

Article 9 (3) of the Value-Added Tax Act

Co., Ltd.

Head of the Daegu Tax Office

Daegu High Court Decision 82Gu203 delivered on October 25, 1983

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal are examined.

1. Where an entrepreneur supplies goods or services, Article 16 of the Value-Added Tax Act provides that a tax invoice stating the prescribed matters shall be issued to a person who receives the supply of goods or services at the time prescribed in Article 9 (1) and (2) of the Act, and Article 9 of the same Act provides that the delivery of goods is made available, the time when the supply of goods is determined, the time when the supply of goods is made available, or when the goods, facilities or rights are used, shall be the time of supply for the goods or services, and the provisions of paragraph (3) of the same Article provides that, if a tax invoice under Article 16 of the Act is issued even after the expiration of the time prescribed in Article 9 (1) and (2) of the Act, the time of delivery shall be deemed

2. According to the facts established by the judgment of the court below, in supplying export goods by local letter of credit, the plaintiff received an order for the sale of the goods from the trader who opened the local letter of credit and prepared a copy of the tax invoice in accordance with it before the delivery of the goods, and then submitted it to the bank to receive the export financial funds equivalent to the price of the goods, but in fact, each time the goods are delivered to the trader, and the tax invoice was prepared and delivered lawfully, and the tax invoice was submitted to the defendant, who is the taxable authority, within the prescribed period of the taxable period.

3. If the Plaintiff prepared a copy of the tax invoice as above and submitted it to the financial institution, it is deemed that the goods were supplied at that time pursuant to Article 9(3) above, and thus, based on the time, the tax base and tax amount were not reported within the prescribed period, and the government was not submitted the tax invoice. The instant tax disposition imposed on the unreported and unreported amount supplied pursuant to Article 22(2)1 and 4 of the same Act is lawful.

4. The original objective of the VAT is to transfer the value-added tax to the final consumer without duplicate taxation by allowing the recipient to deduct the input tax amount (see Article 17 of the Act) on the part of the transaction parties in supplying taxable goods or services (see Article 17 of the Act).

Therefore, it is interpreted that a supplier who issued a tax invoice prior to the arrival of the time of supply as stipulated in Article 9(3) of the above Act, prepared a tax invoice and delivered it to a person who is supplied (including his agent, employee) or a person who is supplied with it. Accordingly, in the above finalized facts, it is interpreted that the Plaintiff’s submission of a copy of the tax invoice in the procedure for financing from the L/C issuing bank and submitted it to the financial institution does not constitute the issuance of the tax invoice under the above Article. Therefore, the decision of the court below which did not regard the time of supply of the goods as the time of the submission of the copy of the tax invoice as the time of supply of the goods is just and it cannot be said that

Therefore, the appeal is dismissed, and the costs of the appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Jeon Soo-hee (Presiding Justice)