The meaning of the land-related input tax amount which is subject to non-deduction of input tax amount.

An input tax amount related to capital expenditures for the creation, etc. of land shall not be deducted from the output tax amount even in cases related to a project for which the value-added tax is not exempted, and such input tax amount shall be recovered by including it in the acquisition value in the process of calculating the transfer price difference when it was included

Article 17 (2) 4 of the Value-Added Tax Act

Article 60 (6) of the Enforcement Decree of the Value-Added Tax Act

1. The plaintiff's claim is dismissed.

2. Litigation costs shall be borne by the plaintiff.

Purport of Claim

The defendant's decision to dismiss an application for correction filed by the plaintiff on September 22, 2006 shall be revoked.

1. Details of the disposition;

A. The Plaintiff was a company running a golf course at ○○○○○○○○○○○○○○○○, which reported and paid the value-added tax for the first and second years in 2003 within the statutory period.

B. On July 25, 2006, the Plaintiff filed a claim for correction with the Defendant for the refund of the total amount of input tax related to the land which was not deducted at the time of filing the value-added tax return for each of the above taxable periods (259,779,567,017, 20032, 203, 14,212,425, hereinafter “the instant input tax amount”). However, on September 22, 2006, the Defendant issued the instant disposition dismissing the claim.

[Ground of recognition] Facts without any dispute, Gap evidence 1, Eul evidence 1-4, Eul evidence 2-3, the purport of the whole pleadings

2. Whether the disposition is lawful;

A. The plaintiff's assertion

(1) In the latter part of Article 17(2)4 of the Value-Added Tax Act, the term “land-related input tax amount” refers to the land-related input tax amount related to the business subject to which the value-added tax is exempted, and the golf course business is not subject to the exemption of value-added tax, and thus, the instant disposition taken on a different premise is unlawful even though it should be deducted from the output

(2) Since Article 17 (2) 4 of the Value-Added Tax Act, which provides the basis for the instant disposition, and Article 60 (6) of the Enforcement Decree of the Value-Added Tax Act (hereinafter “each of the instant provisions”), Article 17 (2) 4 of the Value-Added Tax Act, which provides for unconstitutional and invalid provisions that are contrary to the basic principles of the Act on Tax Credit at Former Stage, the requirement for taxation, the identification of taxation requirements, the principle of equality, and the principle of guaranteeing property rights, etc., the instant

(b) Related statutes;

It is as shown in the attached Table related statutes.

C. Determination

(1) The meaning of "land-related input tax amount" under the latter part of Article 17 (2) 4 of the Value-Added Tax Act

According to Article 12(1)12 of the Value-Added Tax Act, the supply of land is exempt from value-added tax, and Article 17(2)4 of the same Act provides that input tax related to the business of supplying goods or services exempt from value-added tax (including investment-related input tax) and land-related input tax as prescribed by the Presidential Decree shall not be deducted from the output tax amount. Article 60(6) of the Enforcement Decree of the same Act provides that input tax amount related to the capital expenditure related to the creation, etc. of land refers to the input tax amount corresponding to the cost constituting the acquisition cost by increasing the value of the land in reality.

In light of the relevant provisions of the Value-Added Tax Act, input tax amount related to capital expenditures for the creation, etc. of land cannot be deducted from the output tax amount even in cases related to the business for which value-added tax is not exempted. Such input tax amount was included in the cost for acquisition of the relevant land, and should be recovered by the method of including it in the acquisition value in the process of calculating the difference in the transfer price at the time of transfer of the relevant land. Therefore, the Plaintiff’s assertion that this part

(2) Whether each of the provisions of this case violates the Constitution

In light of the fact that land is an element of creating added value with capital and labor, and the use of land is not consumed or extinguished as well as other goods such as goods, it cannot be necessarily deemed appropriate to impose value-added tax, which is the consumption tax of land. Article 12(1)12 of the Value-Added Tax Act provides that the supply of land is exempted from value-added tax in consideration of the characteristics of the above land, and Article 60(6) of the Enforcement Decree of the Value-Added Tax Act provides that the input tax amount related to land-related input tax under Article 17(2)4 of the Value-Added Tax Act is an input tax amount related to capital expenditures for developing the land, etc. and specifically provides for capital expenditures in accordance with relevant provisions, such as Article 31(2) of the Enforcement Decree of the Corporate Tax Act and Article 67(2) of the Enforcement Decree of the Income Tax Act, each of the instant provisions that stipulate the non-deduction of input tax amount cannot be deemed contrary to the basic principle of value-added tax, and the content cannot be deemed contrary to the basic principle of taxation.

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit, and it is so decided as per Disposition.

public official law, order of law,

/ former Value-Added Tax Act (amended by Act No. 8142 of Dec. 30, 2006)

Article 18 (Exemption from Taxation)

(1) The supply of goods or services falling under any of the following subparagraphs shall be exempted from value-added taxes:

12. Land:

Article 17 (Payable Tax Amount)

(1) The amount of value-added taxes payable by an entrepreneur (hereinafter referred to as the “paid tax amount”) shall be the amount computed by deducting the tax amount under the following subparagraphs (hereinafter referred to as the “purchase tax amount”) from the tax amount on the goods and services supplied by him (hereinafter referred to as the “sales tax amount”): Provided, That where an input tax amount exceeds the output tax amount, it shall be a refundable tax amount (hereinafter

1. The tax amount for the supply of goods or services used or to be used for his own business;

2. The tax amount for the import of goods used or to be used for his own business; and

(2) The following input taxes shall not be deducted from the output tax amount:

4. The input tax amount related to the business of supplying goods or services exempted from the value-added tax (including the input tax amount related to investments) and the land-related purchase tax amount as prescribed by

【Enforcement Decree of the Value-Added Tax Act

Article 60 (Application of Purchase Tax Amount by Law)

(6) The term “land-related input tax amount as prescribed by the Presidential Decree” in Article 17 (2) 4 of the Act means the input tax amount falling under any of the following subparagraphs, which is the input tax amount related to capital expenditures for

1. An input tax amount related to the acquisition and alteration of the form and quality of land, the development of factory sites and housing sites;

2. Where a parcel of land on which a building is located is acquired, and the building is removed and only land is used, the input tax amount on the cost of acquisition and removal of the removed

3. An input tax amount related to the expenses forming the acquisition cost of land by practically increasing the value of land.