The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Article 13(1) of the former Value-Added Tax Act (wholly amended by Act No. 11873, Jun. 7, 2013; hereinafter the same) provides that “The tax base of value-added tax on the supply of goods or services shall be the sum of the values in each of the following subparagraphs (hereinafter “value of supply”).” In each of the above provisions, “where payments are made in money, the payment shall be made in cash” (Article 1); and “market price of goods or services supplied by the person himself/herself (Article 2)” (Article 13(1).

In addition, Article 48(1) of the former Enforcement Decree of the Value-Added Tax Act (wholly amended by Presidential Decree No. 24638, Jun. 28, 2013; hereinafter the same) provides that “The tax base under Article 13(1) of the former Value-Added Tax Act includes all monetary values having a quid pro quo relationship, regardless of the pretext, such as payments, commissions, fees, and any other things received from the

Meanwhile, Article 13(2) of the former Value-Added Tax Act provides for “amount that is not included in the tax base”. Of them, Article 13(2)1 of the former Value-Added Tax Act provides for “amount of discount”.

In addition, Article 52(2) of the former Enforcement Decree of the Value-Added Tax Act provides that “The overcharge amount under Article 13(2)1 of the Act shall be the amount which deducts a specified amount from the ordinary supply value at the time of supply of the goods or services in accordance with the payment of quality, delivery cost, and other terms and conditions of supply”.

In relation to the supply of goods or services, the amount of overcharge which is directly deducted from the ordinary supply value due to the conditions of supply, such as quality quantity, payment of the cost of delivery, etc., shall be prior to the time of the supply of the goods or services.