Whether the value of merchandise coupons can be viewed as discount, etc.

The provision of merchandise coupons is not expected to be paid definitely at the time of the use of the game, but is likely to be paid automatically at a certain probability, and accordingly, the value of supply cannot be viewed as a discount, etc., unless the value of supply itself is changed.

Article 13 of the Value-Added Tax Act [Tax Base]

1. The plaintiff's appeal is dismissed.

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

The judgment of the first instance shall be revoked.

The Defendant’s imposition of value-added tax of KRW 352,038,610 for the first period of 2006 against the Plaintiff on March 2, 2007 is revoked.

1. cite the judgment of the first instance; and

The reasoning for the court's explanation concerning this case is as stated in the judgment of the court of the first instance except for the part written by the court as stated in Paragraph (2). Thus, it is acceptable to accept this as it is in accordance with Article 8 (2) of the Administrative Litigation Act and Article 420

2. Parts to be dried;

From 6th to 15th 10th 10th 6th 6th 6th 6th 6th 6th 6th 6th 6th 10

D. Determination

1) Determination as to the assertion that the instant game room business is not subject to value-added tax

Although gambling income in casino, etc. is not subject to value-added tax, it is not explicitly stipulated that it is not subject to value-added tax, it is not subject to value-added tax because the gambling income from casino, etc. does not create value-added value-added tax except money received by customers from the money for gambling (see Supreme Court Decision 2004Du13288, Oct. 27, 299).

However, even if the service provided in the game of this case has a character as a speculative act, ① the game of this case is limited to only one game time (not less than 4 seconds) or the face value amount (not more than 20,000 won) of gift certificates (not more than 20,000 won) that were rated in accordance with the former Guidelines for Handling Gifts at Game Establishments (amended by the Ordinance of the Ministry of Culture and Tourism No. 2006-24, Nov. 1, 2006; hereinafter the same shall apply). ② The amount invested in the game of this case can be attributed to the total game of the game of this case, but it is not returned to users, and ③ users are not returned. Accordingly, considering the fact that the game of this case is used in the game of this case for not less than 4 seconds, and thus, it cannot be viewed that the added value cannot be produced in this process.

Meanwhile, in the case of the instant game room, the Plaintiff’s provision of the game machine user is the use of the game machine, and the instant disposition is premised on this. Therefore, the Plaintiff’s assertion that the instant disposition is unlawful, as the Plaintiff’s discount purchase revenue per gift certificate that was acquired by the purchase of gift certificates is not subject to value-added tax

2) Determination as to the assertion that the purchase price of merchandise coupons should be deducted when calculating the tax base of the instant game site

Article 1 Paragraph 1 Item 1 of the Value-Added Tax Act provides that "the supply of goods or services" is subject to value-added tax; Paragraph 3 of the same Article provides that "all services and other acts with property value other than goods"; Paragraph 1 of Article 13 of the same Act provides that "the tax base of value-added tax shall be the total value of goods or services falling under any of the following subparagraphs"; while Paragraph 3 of the same Article provides that "the price shall not be deducted from the tax base for the supply price of goods or services after the provision of goods or services." The contents and purport of the above provision, Korea's value-added tax credit method is different from the income tax and corporate tax, so it is not the concept of deduction for expenses for the use of merchandise coupons that are provided by users for the purpose of providing merchandise coupons to users separately from the supply price of merchandise coupons that are "the opportunity to use merchandise coupons or merchandise coupons that are provided by the game of this case."

3) Whether a gift certificate value deduction is made as a "amount of discount", etc.

The gift certificates are not definitely scheduled to be paid at the time of the use of the game, but are likely to be paid at a certain probability. Accordingly, the value of supply per se is not changed. Accordingly, it cannot be viewed as the "amount of discount" under Article 13 (2) of the Value-Added Tax Act or the "value of the goods returned", and therefore, the plaintiff's assertion on this part is without merit.

3. Conclusion

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