Whether the supply of unmanned public telephone management services is exempt from value-added tax (negative)

The term "public telephone" as the object of exemption from value-added tax under Article 12 (1) 8 of the Value-Added Tax Act refers to the telephone service itself, and it is reasonable to view that the management service of public telephone is not included in the above management service because it cannot be deemed that it is the service supplied to the communication agency and that it is the service supplied to the user of the final public telephone. In addition, in relation to the use of the public telephone (tel), the above management service is related to the supply of the service, which is the main transaction, the contents and the supplier of each service are different, and therefore, it does not constitute the exemption from value-added tax, since it does not constitute any incidental service under Article 3 (3) of the Enforcement Decree of the Value-Added Tax Act.

Article 12(1)8, Article 12(3) of the Value-Added Tax Act, Article 3 of the Enforcement Decree of the Value-Added Tax Act

Supreme Court Decision 83Nu616 Decided October 22, 1985

[Defendant-Appellant] Cho Jae-sik, a foundation

Head of Seodaemun Tax Office

Seoul High Court Decision 83Gu645 delivered on July 24, 1984

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

The grounds of appeal by the defendant litigant are examined.

1. Under Article 8 of the former Telecommunications Act (Act No. 3091, Dec. 31, 1977), the court below found that the Plaintiff corporation entered into an entrustment contract for the unmanned public telephone services with the head of the Seoul Bridge on December 20, 1979, and determined that the contract for the unmanned public telephone services, which the Ministry of Information and Communication has been in charge of, and entered into the entrustment contract for the unmanned public telephone services, including the installation, maintenance, and repair of, the unmanned public telecommunications equipment and the telephone room as stipulated in Article 189 of the Enforcement Decree of the same Act, among the public telecommunications services such as the service of telecommunications facilities and equipment within the entrusted scope of the contract, and the provision of the service of the maintenance facility and equipment necessary for the operation of the maintenance facility, maintenance of the equipment and equipment necessary for the provision of the maintenance facility, maintenance of the telephone equipment and the maintenance facility, maintenance of the telephone room, value-added tax, etc., which naturally include the provision of the above 10% or 20% of the supply of the telecommunications equipment.

2. However, the term "public telephone" as an object of tax-exempt under Article 12 (1) 8 of the Value-Added Tax Act means one kind of public telecommunications services for which users use telecommunications facilities or other telecommunications facilities for communications (see Article 2 subparagraph 3, Article 12 (1) of the former Telecommunications Act, and Article 33 of the Enforcement Decree of the same Act) are supplied by using telephone rates for their own telephone services, and such management services as the installation, maintenance, repair, round-up inspection, or collection of charges for their own telephone and telephone services are supplied to the relevant communications agency (or the telecommunications construction works under Article 3-2 of the former Telecommunications Act) and which ordinarily include the supply of goods or services to the users of such services, and thus are not necessarily included in the scope of the supply of goods or services, which are necessary for the supply of goods or services, as stated in Article 12 (1) 3 or 4 of the former Enforcement Decree of the same Act, since such services are also included in the supply of goods or services, it cannot be deemed that such supply of goods or services is necessarily included in the supply of goods or services.

3. The court below's decision that the public telephone management services under Article 12 (1) 8 of the Value-Added Tax Act include the public telephone management services in addition to the use services of the public telephone, and that the management services of the public telephone supplied by the plaintiff constitute an incidental service under Article 12 (3) of the Value-Added Tax Act in relation to the use services of the public telephone, and thus constitutes an object of exemption from value-added tax, is erroneous in the misunderstanding of legal principles as to the scope of the public telephone services and the scope of incidental services in each of the above laws and regulations, which affected the conclusion of the judgment. Therefore,

Therefore, the judgment of the court below is reversed, and the case is remanded to the court below. It is so decided as per Disposition by the assent of all participating Justices.

Justices Jeong Jong-tae (Presiding Justice)