[1] The meaning of "other non-profit organizations" under Article 30 of the former Enforcement Decree of the Value-Added Tax Act concerning the scope of educational services exempt from value-added tax

[2] In a case where a non-profit organization established pursuant to other Acts and subordinate statutes, other than the Act setting the standards for the specific facilities and equipment of schools, private teaching institutes, etc., is established mainly for lifelong education and guidance and supervision by the competent authority, whether such establishment is included in the “other non-profit organizations” under Article 12(1)6 of the former Value-Added Tax Act and Article 30 of the former Enforcement Decree of the Value-Adde

[3] In a case where an experiential learning program is operated in a private museum that displays glass craft, sculptures, etc. registered as a Class 2 museum pursuant to the former Museum and Art Gallery Support Act, and the head of the competent tax office decided and notified the value-added tax on the ground that an experiential learning in the above museum is subject to value-added tax, the case holding that an experiential learning program offered in the above museum constitutes an educational service exempt from value-added tax

[1] According to Article 12(1)6 of the former Value-Added Tax Act (wholly amended by Act No. 11873, Jun. 7, 2013) and Article 30 of the former Enforcement Decree of the Value-Added Tax Act (wholly amended by Presidential Decree No. 24359, Feb. 15, 2013), the supply of “educational services teaching knowledge, skills, etc. to students, etc. at schools, private teaching institutes, teaching institutes, training institutes, teaching schools, or other nonprofit organizations, or youth training facilities under the Juvenile Activity Promotion Act, which are licensed, authorized, or registered with, or reported to the competent authority, or registered with, the competent authority.”

As such, the reason why the competent authority requires “permission, authorization, etc. by the competent authority” is to guide and supervise the relevant school or private teaching institute, etc., and Article 30 of the Enforcement Decree of the above-mentioned Act requires the “other non-profit organizations” concurrently with the private teaching institute, teaching institute, training institute, teaching institute, etc., the term “other non-profit organizations” under Article 30 of the above-mentioned Enforcement Decree refers to all the non-profit organizations established with permission, approval, etc. from the competent authority, and, in principle, refers to an organization established with permission, etc. under the law that sets the standards for the specific facilities and equipment of schools or private teaching institutes, such as the Elementary and Secondary Education Act, the Higher Education Act, the Early Childhood Education Act, the Act on the Establishment and Operation of Private Teaching Institutes, the Installation and Utilization of Sports Facilities Act, the Lifelong Education Act,

[2] Article 2 Subparag. 2 of the Lifelong Education Act provides not only “facilities, corporations, or organizations authorized, registered, or reported under the Lifelong Education Act” (a) but also “facilities, corporations, or organizations with the main purpose of lifelong education pursuant to other Acts and subordinate statutes (c).” Lifelong Education refers to all forms of systematic activities, including supplementary education of academic background except regular school curriculum, adult literacy education, vocational ability improvement education, humanities education, culture and arts education, culture and arts education, and citizen participation education. Thus, even though a non-profit organization is established pursuant to other Acts and subordinate statutes, other than those that set forth the standards for facilities and equipment for schools, private teaching institutes, etc., which are established with the main purpose of lifelong education, is established with the authorization of the competent authority, and which are conducted with the lifelong education program, including Article 12(1)6 of the former Value-Added Tax Act (wholly amended by Act No. 11873, Jun. 7, 2013) and Article 25(1)30 of the former Enforcement Decree of the Value-Added Tax Act.

[3] In a case where an experiential learning program is operated in a private museum that exhibits glass craft and sculptures registered as a Class 2 museum pursuant to Article 16(1) of the former Museum and Art Gallery Support Act (amended by Act No. 14204, May 29, 2016; hereinafter “former Museum Support Act”), and the head of the competent tax office determined and notified the value-added tax on the ground that the experiential learning in the above museum is subject to value-added tax, the above museum, which is a private museum that is equipped with museum material and facilities, constitutes a lifelong education institution provided with knowledge and arts education under Article 2 subparag. 2(c) of the former Value-Added Tax Act (amended by Presidential Decree No. 25137, Jun. 13, 2013; hereinafter “the former Museum”) and that such museum constitutes a lifelong education institution provided with knowledge and arts education under Article 2 subparag. 13(c) of the former Enforcement Decree of the Lifelong Education Act (amended by Presidential Decree No. 25130, Jun. 137, 2015). 2015).

[1] Article 12(1)6 of the former Value-Added Tax Act (wholly amended by Act No. 11873, Jun. 7, 2013; see current Article 26(1)6); Article 30 of the former Enforcement Decree of the Value-Added Tax Act (Amended by Presidential Decree No. 24359, Feb. 15, 2013; see current Article 36) / [2] Article 12(1)6 of the former Value-Added Tax Act (wholly amended by Act No. 11873, Jun. 7, 2013; see current Article 26(1)6); Article 30(1)6 of the former Enforcement Decree of the Value-Added Tax Act (Amended by Presidential Decree No. 24359, Feb. 15, 2013; see current Article 36); Article 2 subparag. 1; Article 2 subparag. 2 subparag. 1, 2013; 20 subparag. 16(c) and 4)

[1] Supreme Court Decision 2007Du23255 decided Jun. 12, 2008 (Gong2008Ha, 986)

Plaintiff

Head of Jeju Tax Office

Gwangju High Court ( Jeju) Decision 2016Nu1075 Decided October 19, 2016

The part of the lower judgment regarding the imposition of value-added tax for the first and second period of 2012 is reversed, and that part of the case is remanded to the Gwangju High Court. The remainder of the appeal is dismissed.

The grounds of appeal are examined.

1. On the first and second imposition of value-added tax in 2012

A. According to Article 12(1)6 of the former Value-Added Tax Act (wholly amended by Act No. 11873, Jun. 7, 2013) and Article 30(1) of the former Enforcement Decree of the Value-Added Tax Act (wholly amended by Presidential Decree No. 24359, Feb. 15, 2013), the supply of “educational services teaching knowledge, skills, etc. to students, etc. at schools, private teaching institutes, teaching institutes, training institutes, teaching institutes, or other nonprofit organizations permitted or authorized by, or registered with, the competent authorities or reported to, the competent authorities, or registered with, the competent authorities, or reported to, the competent authorities, or youth training facilities under the Juvenile Activity Promotion Act” is exempt from value-added tax

As such, the reason why the competent authority requires “permission, authorization, etc. by the competent authority” is to guide and supervise the relevant school or private teaching institutes, etc., and Article 30 of the Enforcement Decree of the above Act concurrently requires “other non-profit organizations” with private teaching institutes, teaching institutes, training institutes, teaching schools, etc., the term “other non-profit organizations” under Article 30 of the above Enforcement Decree does not mean all the non-profit organizations established with permission, authorization, etc. from the competent authority, and, in principle, it does not mean that the term “other non-profit organizations” under the above Article 30 of the above Enforcement Decree refers to all organizations established with the permission, authorization, etc. from the competent authority, etc., and it is reasonable to interpret the term “education and arts education institutions” as their main facilities and equipment for lifelong education, such as the Elementary and Secondary Education Act, the Infant Education Act, the Establishment and Operation of Private Teaching Institutes, the Act on the Establishment and Utilization of Sports Facilities, and the Lifelong Education Act (hereinafter “Lifelong Education Facilities Act”), which are established with the general educational facilities or non-profit Organizations established for lifelong Education Act.

B. According to the reasoning of the first instance judgment as cited by the lower court and the evidence duly admitted, the following facts are revealed.

(1) On March 1, 2008, the Plaintiff established a “○○○ Museum” (hereinafter “instant museum”) which is a private museum that displays glass craft, sculptures, etc., and registered the instant museum with the Governor of Jeju Special Self-Governing Province as a Class II museum on November 2, 2010 pursuant to Article 16(1) of the former Museum and Art Gallery Support Act (amended by Act No. 14204, May 29, 2016; hereinafter “former Museum Museum Support Act”).

(2) In the instant museum, an experiential learning program was operated and received from applicants for experiential learning separate from the museum entrance fees, and the Plaintiff reported this as value-added tax-free revenue amount.

(3) On December 8, 2014, the Defendant decided and notified the Plaintiff of the value-added tax for the first and second years (hereinafter “instant disposition”) by deeming that the experiential learning in the instant museum constitutes subject to value-added tax.

C. According to Article 2 subparag. 1 of the former Museum Art Gallery Act, a museum refers to a facility that collects, manages, preserves, preserves, investigates, researches, exhibits, or educates materials on history, height, human race, folklore, arts, animals, plants, minerals, science, technology, industry, etc. in order to contribute to the development of culture, arts, and the enhancement of the general public’s enjoyment of culture. Article 4(1)2 of the former Museum Art Gallery Act provides that museum materials shall be educated as a museum’s business. Accordingly, the instant museum, a private museum registered with museum materials and facilities, etc. equipped pursuant to the Museum Art Gallery Act, constitutes a lifelong educational institution as defined in Article 2 subparag. 2(c) of the Lifelong Education Act with respect to educational activities, such as culture and arts education and citizen participation education, etc. conducted on museum materials collected, managed, preserved, surveyed, surveyed, and exhibited.

In addition, the museum of this case shall observe the former Museum Act concerning its facilities, management and operation, and if it violates the former Museum Act or the establishment purpose, it shall be subject to instruction and supervision by the Governor of Jeju Special Self-Governing Province, etc., such as requesting correction from the Minister of Culture, Sports and Tourism or Jeju Special Self-Governing Province pursuant to Article 28

D. Examining the above facts and circumstances as to the museum of this case and the relevant legal provisions in light of the legal principles as seen earlier, the museum of this case constitutes a lifelong educational institution under the Lifelong Education Act, and constitutes “other non-profit organizations” as stipulated in the tax-free provision of this case, and an experience study on glass only offered by the museum of this case, which displays glass craft or sculptures, is deemed an education exempt from value-added tax, as it is an education for culture and arts education or citizen participation, teaching knowledge and skills concerning museum material.

Nevertheless, the lower court determined otherwise, solely on the grounds that the Plaintiff cannot be deemed to have established by registering the instant museum pursuant to the Educational Facilities Act even if the Plaintiff completed the registration procedures pursuant to the Museum Act, and that the experiential learning offered by the instant museum does not constitute an educational service exempt from value-added tax pursuant to the instant tax-free provision.

Therefore, the lower court erred by misapprehending the legal doctrine on the scope of educational services subject to value-added tax exemption, thereby adversely affecting the conclusion of the judgment. The ground of appeal assigning this error is with merit

2. As to the remainder

Of the lower judgment, the Plaintiff appealed on the part of the first instance judgment that rejected the lawsuit seeking revocation regarding the act of recommending the revised return of value-added tax in 2011, 1 and 2, 2013, and 194. However, the Plaintiff did not state specific grounds for appeal on the petition of appeal and the appellate brief.

3. Conclusion

Therefore, the part of the lower judgment regarding the imposition of value-added tax for the first and second half years 2012 is reversed, and that part of the case is remanded to the lower court for further proceedings consistent with this Opinion. The remaining grounds of appeal are dismissed. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Kim So-young (Presiding Justice)