Whether a fee for the use of the cash payment instruments constitutes a financial and insurance service exempt;

Services using a cash payment machine and receiving fees in accordance with a certain ratio are not essentially exempt from financial and insurance services.

Article 33 (Scope of Financing and Insurance Services)

1. The plaintiff's claim is dismissed.

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

The defendant's disposition rejecting to correct the value-added tax of KRW 1,282,85,00 against the plaintiff on July 20, 2006 shall be revoked.

1. Details of the disposition;

The following facts are not disputed between the parties, or may be acknowledged by considering the whole purport of the pleadings in each of the statements in Gap evidence 2-1, 2, 2, 2, 3, 1 and 2-2:

A. On April 15, 1997, the Plaintiff was established for the purpose of manufacturing, selling, and leasing computers, wired and wireless communication equipment and related ancillary equipment, software development, manufacturing and selling software, cash services and credit card agency business, deposit withdrawal and various financial services agency, automated machine sales, management, maintenance, repair, etc. on behalf of the Plaintiff. On September 22, 2003, the Plaintiff entered into a contract for the use of the “OOOO” (hereinafter referred to as the “instant contract”) with the “OOOOOO” (hereinafter referred to as the “instant contract”) and entered into a contract for the use of the “OOOOO” in a public place with frequent multiple traffic, and had customers, such as ○○ et al. use of the services by cash withdrawal, etc., and received the fee for the use of the services in return for the payment of the fee (hereinafter referred to as “the fee for the use of the services”) between the Plaintiff and the insurance company.

B. The Plaintiff reported that the instant service was a service subject to value-added tax, and filed a return and payment with the Defendant for the total amount of KRW 1,282,85,000 (hereinafter “value-added tax”) from the first period to the second period from 2003 to the second period from 2004.

C. On April 25, 2005, the Plaintiff filed a claim for correction of value-added tax with the content that the supply of the instant service constitutes a service exempt from value-added tax pursuant to Article 12(1)10 of the Value-Added Tax Act and Article 33(1) and (2) of the Enforcement Decree of the same Act, and the Plaintiff filed a claim for correction of value-added tax for the refund of the instant value-added tax that the Plaintiff erroneously paid or overpaid pursuant to Article 45-2 of the Framework Act on National Taxes and Article 25-3 of the Enforcement Decree of the same Act. On July 20, 2006, the Defendant issued a rejection disposition against the Plaintiff’s request

D. Accordingly, the Plaintiff filed an appeal with the National Tax Tribunal on August 29, 2006. On November 3, 2006, the National Tax Tribunal dismissed the Plaintiff’s appeal on the ground that the instant service does not fall under financial and insurance services under Article 12(1)10 of the Value-Added Tax Act, and that the Plaintiff’s instant service is not financial and insurance business entities, but constitutes the Plaintiff’s main business.

2. Whether the rejection disposition of this case is legitimate

A. The plaintiff's assertion

According to Article 27 of the Banking Act, Article 18-2 of the Enforcement Decree of the Banking Act, and the Guidelines on the Scope of Incidental Business among the banking business ("Financial and Economic Department Notice No. 2003-13" hereinafter) include the banking business in the scope of banking business. The service of this case is one of the banking business prescribed in the above-mentioned Acts and subordinate statutes, where customers of the financial institutions such as Nonghyup, etc. intend to deposit money or account transfer, etc., the service of this case is subject to exemption from value-added tax or the service of receiving and paying money on behalf of the financial institutions such as ○○, etc. through the cash automatic machine established and managed by the plaintiff or between banks or between customers, and is subject to exemption from value-added tax or other similar services.

The rejection disposition of this case, which is judged differently, is illegal.

(b) Related statutes;

Attachment 'Related Acts and subordinate statutes' shall be as shown.

(c) Fact of recognition;

According to the above evidence, the Plaintiff concluded the instant case contract with ○○ on September 22, 2003.

A service-using agreement for out-of-the-counter automated machines (ROMs)

Article 1 (Purpose) The purpose of this Agreement is to place the matters necessary to enable customers of ○○○ to receive financial services, such as deposit withdrawal, through an out-of-the-counter automation device (hereinafter referred to as “the automation device of this case”) installed by the Plaintiff.

Article 4 (Scope of Services) The scope of services specified in this Agreement shall be deposited in the deposit, the balance, and the extension of the scope of services and detailed terms of use shall be determined by mutual agreement between the Nonghyup and the plaintiff.

Article 7 (Settlement of Fees)

① ○○ and the Plaintiff receive user fees for the instant automation machine services in accordance with the separate separate agreement.

② If ○○○’s customer uses the Plaintiff’s automation machine service, the Plaintiff’s agent collected user fees from the customer account, and then deposit them into the fee account designated by the Plaintiff on every next day upon the Plaintiff’s request for payment.

Article 8 (Management of Operating Funds)

① ○○○ provides the Plaintiff with funds required by ○○ customers for the use of the instant automation machine service, and the calculation scale and payment method of operating funds shall be dealt with as agreed between ○○ and the Plaintiff.

(2) The Plaintiff shall manage the operating funds received from ○○ with the care of a good manager, and shall compensate for any loss of operating funds, theft, or any other cause attributable to the Plaintiff, where the damage was inflicted on ○○ or ○○ customer, the Plaintiff shall immediately compensate for the corresponding loss

(3) Operating funds under paragraph (1) shall be deposited into the bank account designated by the Plaintiff, and the Plaintiff shall immediately return the operating funds supplied by ○○ upon termination of the contract.

Article 9 (Security of Operating Funds) The Plaintiff shall provide the Plaintiff with a bank payment guarantee equivalent to the operating funds provided by ○○○○ in order to guarantee the obligation to compensate for the damages under Article 8 (2) and to return the operating funds.

Article 11 (Responsibility for Installation, Operation, and Management of Automatic Instruments)

① Installation and management of the automation device of this case shall be based on the Plaintiff’s responsibility, and where new installation, closure, alteration and transfer of the automation device of this case are carried out, it shall be immediately notified to ○○.

② The Plaintiff may not install automation equipment without the prior consent of ○○○ in a place where the business store and the business network overlap.

③ The Plaintiff shall settle disputes arising in connection with the provision of the instant automation device services, if any, with theft, disorder with computer devices, or customer.

④ The Plaintiff shall be held responsible for all matters arising from his neglect to perform the duties set forth in paragraph (3) above (Provided, That this is omitted).

⑤ The details of transactions of the instant automation device shall be kept and managed on the Plaintiff’s responsibility, and the Plaintiff shall actively comply with the request made by ○○, including the details of daily transactions and compilings, data on the settlement of accounts, and details of installation of automation device in connection with the instant automation device’s performance of duties.

D. Determination

(1) Article 12(1)10 of the Value-Added Tax Act provides that value-added tax shall be exempted for financial and insurance services determined by the President. Article 33(1)1 of the Enforcement Decree of the same Act provides that "banking business under the Banking Act" shall be one of the financial and insurance services provided for in Article 12(1)10 of the Value-Added Tax Act, and Article 12(2) of the same Act provides services identical or similar to financial and insurance services incidental to the main business of a person who engages in a business other than a business referred to in any subparagraph of paragraph (1).

Meanwhile, Article 2 (1) 1 of the Banking Act provides that "banking business is a business of lending funds raised by bearing debts from many and unspecified persons through the receipt of deposits and issuance of securities and other bonds." Article 18-2 of the Enforcement Decree of the Banking Act under Article 27 (2) of the Banking Act and guidelines on the scope of incidental businesses among the banking businesses delegated by Article 27 (2) of the Banking Act (Notice No. 2003-13 of the Ministry of Finance and Economy of July 3, 2003) include 24 businesses such as receipt of deposits and installment savings or issuance of securities, lending of funds or discount of bills, internal and foreign exchange business, and receipt and payment agency business as incidental businesses of the Banking Act (Article 33 (4) of the Enforcement Decree of the Value-Added Tax Act, even if they are included in the scope of banking business of the Banking Act as above, it does not include 24 businesses such as lottery tickets, gift certificates, payment-type stocks or gold bullion services, corporation purchase services, financial intermediary services, loan brokerage services, etc.

(2) Therefore, as to whether the instant service does not constitute an exemption from value-added tax under Article 33(4) of the Enforcement Decree of the Value-Added Tax Act, and whether it falls under the scope of banking business under the provisions of the Banking Act related Acts and subordinate statutes (the Plaintiff claims in this case based on the provision of services under a contract with ○○○. Since other financial institutions that the Plaintiff traded are also deemed to have provided services under the same contract with ○○○○○○○○○○○, the Plaintiff’s determination on services under the contract with the Plaintiff would substitute for the judgment of the entire service in this case). The Plaintiff’s content of services provided to ○○○○○○ under the contract of this case refers to having ○○ customers receive financial services, such as deposit withdrawal, balance account transfer, etc. through the automated device installed by the Plaintiff, which is accompanied by the contents of the financial contract (deposit and installment savings contract, etc.) between the bank customers and the Plaintiff’s provision of services by proxy through the Plaintiff and the Plaintiff’s bank itself under the relevant Acts and subordinate statutes.

원고는, 원고가 제공하는 이 사건 용역이 은행 업무지침 ∐. 금융기관의 부수업무의 범위 제9호 소정의 '수납 및 지급대행'업무에 해당한다는 것이나, 은행업에 있어서의 고유의 은행업무의 범위에 속하는 '예금ㆍ적금의 수입업무'는 고객들로부터 예금ㆍ적금을 받거나 지급하는 업무를 당연히 포함하는 개념이라는 점, 위 은행 업무지침 ∐.에 규정한 업무는 은행 업무에 부수하는 업무로써 고유한 의미의 업무외의 것을 규정하고 있는 것으로 제9호는 수납 및 지급업무를 '대행'하는 업무이지 수납 및 지급업무 자체가 아니라는 점 등에 비추어 보면, 위 지침상의 '수납 및 지급대행'업무라 함은 고유한 의미의 은행업무로서의 예ㆍ적금의 수입이나 지급을 의미하는 것이 아니라 은행 고유의 업무외의 것으로서의 수납 및 지급의 '대행'업무를 의미하는 것으로 각종 공과금, 관리비, 등록금 등의 수납을 금융기관에서 대행하고 수납대행계약을 맺은 기관이나 업체에 수납한 금액을 지급하고 일정한 수수료를 받는 업무와 회사채 발행에 따른 원리금 지급대행, 납품대금 지급대행 등 고객의 지급업무를 대행하고 수수료를 받는 업무를 의미하는 것이라 할 것이다.

Therefore, the plaintiff's share that the service of this case constitutes "receiving and paying agency" under the above guidelines is without merit.

Furthermore, as seen earlier, the Plaintiff collected funds from ○○○○’s customer for the use of automated machine services. However, the Plaintiff’s business with receiving funds from ○○○○○○ to charge cash to ○○ customer so that it does not cause inconvenience to the use of automated machine services; the Plaintiff’s management of operating funds as a good manager; and the Plaintiff’s liability shall only compensate for damages to ○○○○ or ○○ customer; and the Plaintiff cannot be deemed as providing cash withdrawal, etc. to ○○ customer under the Plaintiff’s responsibility on its independent position; in light of the fact that the Plaintiff is responsible for installing, managing, maintaining, and maintaining the automated machine of this case; and all expenses incurred in installing, operating, maintaining, and repairing the automated machine of this case, the nature of the instant service does not change in the nature of the instant service. The Plaintiff’s service is a service that connects the computer network owned by the Plaintiff to ○○ and allows ○○ customer to use it, and it does not change the nature of the instant service by taking the form of the Plaintiff’s payment of cash payments for the instant service.

Therefore, the plaintiff's assertion based on the premise that the service of this case constitutes a bank business under the Banking Act-related Acts and subordinate statutes is without merit.

(3) Therefore, the rejection disposition of the Plaintiff’s request for correction of reduction is lawful.

3. Conclusion

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

Related Acts and subordinate statutes

Value-Added Tax Act

Article 12 (Tax Exemption)

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

10. Financing and insurance services, as prescribed by Presidential Decree;

Enforcement Decree of the Value-Added Tax Act

Article 33 (Scope of Financing and Insurance Services)

(1) The financial and insurance services referred to in Article 12 (1) 10 shall mean services falling under the following subparagraphs:

1. A banking business under the Banking Act;

(2) The services identical or similar to the financing and insurance services under paragraph (1) shall be deemed included in the financing and insurance services under Article 12 (1) 10 of the Act, even where a person who runs any business other than those under each subparagraph of paragraph (1) provides such services as incidental

(4) Notwithstanding paragraph (1), any of the following services shall not be deemed financing and insurance services:

1. Provision of services concerning lottery tickets, admission tickets, gift certificates, gold coins, or gold funds as an agent: Provided, That this shall not apply to the sale of financial products by a financial business operator, such as beneficiary certificates, transfer of securities, receipt and payment agency services, and credit cooperative services by the State or a local government on behalf of the State or a local government;

2. Brokerage, intermediation and agency of corporate merger or purchase, and sale and lease of computer systems and software related to credit information services and banking business;

3. Leasing real estate;

4. Services similar to those referred to in subparagraphs 1 and 2 and other services prescribed by the Ordinance of the Ministry of Finance and Economy.

Banking Act

Article 2 (Definitions)

(1) The definitions of terms used in this Act shall be as follows:

1. The term "banking business" means a business of lending funds raised by bearing debts from many unspecified persons through the receipt of deposits and issuance of securities and other bonds;

Article 8 (Authorization of Banking Business)

(1) Any person who intends to carry on banking business shall obtain authorization from the Financial Supervisory Commission.

Article 27 (Scope of Services)

(1) Financial institutions may be engaged in all banking business (hereinafter referred to as "banking business") within the scope of this Act and other related Acts.

(2) The scope of banking business under paragraph (1) shall be prescribed by Presidential Decree.

Enforcement Decree of the Banking Act

Article 18-2 (Scope of Banking Business) The scope of banking business under Article 27 of the Act shall be as follows:

1. Receiving deposits and installment savings, or issuing securities and other debt instruments;

2. Lending funds, or discounting bills;

3. Domestic and foreign exchange.

4. Business incidental to subparagraphs 1 through 3 as determined and announced by the Minister of Finance and Economy.

Guidelines on the Scope of Incidental Business Units among banking operations (Public Notice of Ministry of Finance and Economy No. 2003-13 of July 3, 2003)

Ⅰ. Objectives

The purpose of these guidelines is to set forth the scope of incidental business (hereinafter referred to as "incidental business") that financial institutions under the Banking Act (hereinafter referred to as "financial institutions") may engage in under subparagraph 4 of Article 18-2 of the Enforcement Decree of the Banking Act.

Ⅱ Scope of incidental business of financial institutions;

A financial institution may engage in the following business as an incidental business. In such cases, where the business is required to obtain authorization, permission, etc. pursuant to other Acts and subordinate statutes, it may engage in such business within the scope of authorization, permission, etc.:

1. Guarantee of debts or takeover of notes;

2. Mutual savings;

3. Investment in, lending, sale, or purchase of securities, however, securities subject to sale shall be limited to commercial bills and trade bills;

4. Underwriting and sale of securities, intermediation of public offering of new or outstanding securities, and sale and purchase of national and public bonds and corporate bonds, from among the securities businesses prescribed by the Securities and Exchange Act;

5. Repurchase agreement.

6. Sale of national and public bonds counter;

7. Factoring;

8. Deposit for safekeeping.

9. Agency for collection and payment;

10. The depository of local governments vicariously;

11. Brokerage, intermediation, or agency for corporate mergers and purchases (M&A);

12. Entrustment sale of gold bullions (gold and gold-shaped medals), vicarious sale of gold bullions, and development and sale of related financial products, such as sales and lending of gold bullions and accounts for accumulation of gold bullions;

13. considerable amount of and support for credit information services, business management, restructuring, and finance of companies;

14. Lease of real estate (hereinafter referred to as "real estate lease");

15. Sales agency of revenue stamps, lottery tickets, gift certificates, etc. and advertising by utilizing the computer system, such as the Internet homepage of financial institutions.

16. Transactions of derivatives financial instruments;

17. Related letters, such as payment agency related to electronic commerce, issuance of electronic tax invoices, and certification;

18. Sale and lease of computer systems and software related to banking business;

19. Business of an insurance agency under the Insurance Business Act;

20. Sales of beneficiary certificates, etc. by a person carrying on financial business by proxy pursuant to Acts as provided in Article 13 (1) of the Enforcement Decree of the Banking Act;

21. Issuance and sale of electronic means for prepaid and non-payment of electronic currency, etc. and settlement of payments;

22. Entrustment of general affairs related to indirect investment fund;

23. Stock transfer agency under the Securities and Exchange Act;

24. Termination of the consignment of the management of securitization assets and the debt collection business of the securitization specialized companies, etc. under the Asset-Backed Securitization Act and the Act on Private Participation in Asset-backed Securitization