Additional 46015-449 (Ob. 13, 1999)
Services provided to North Korea are subject to zero tax rate because they fall under services provided overseas.
Since services provided to North Korea fall under the services provided overseas under the Enforcement Decree of the Inter-Korea Exchange and Cooperation Act, the zero tax rate is applied under Article 11 (1) 2 of the Value-Added Tax Act.
Article 11 of the Value-Added Tax Act
1. Materials on the contents of questioning;
(a) Similar cases:
○ Additional 46015-564, March 26, 1998
Our country, as the design contractor, is scheduled to perform the design works overseas, has made inquiries about the value-added tax.
Company A entered into a construction contract with Company B located in the Republic of Korea, and Company B is expected to make a lump sum subcontract to us (the name of the disease).
Therefore, we are in a situation in which we will give our sub-contract to the sub-contractors in our future (nameed) for each type of work.
Provided, That Eul is scheduled to pay the construction cost in Korean won to Byung.
1. Whether the zero tax rate applies between B and C;
2. If the zero-rate tax rate is applied, how the tax invoice shall be written and delivered.
3. Concurrently, the zero-rate tax rate shall continue to apply on a chain basis.
The kind of justice includes companies that take materials abroad, such as free construction companies, and if only those materials are produced in Korea, such as house-generating companies, our country will take them out of Korea if they are supplied to Korea.
1. Where a business operator receives a contract for construction works from a business operator (including a business operator who has received a contract for re-contract; hereinafter the same shall apply) who has received a contract for the construction works overseas, and receives the price from a domestic business operator who has received a contract for the construction works overseas, the value-added tax rate under Article 11 (1) 2 of the Value-Added Tax Act shall apply. In this case, the zero-rate tax rate shall be delivered to the person who has received the contract for the construction works overseas and the contract for the construction services
2. Where a business operator who has been awarded a contract for overseas construction works purchases materials necessary for such construction in Korea and takes them out to a foreign site, it shall not be deemed the supply of goods, and the value-added tax rate shall not apply to the materials supplied in Korea without following a separate local letter of credit or a purchase approval as prescribed by the Foreign Trade Act