Goods supplied to diplomatic missions abroad constitute exported goods and thus the zero-rate tax rate is applied.

The supply of goods to overseas diplomatic missions located abroad is the shipment of domestic goods out of Korea, and thus constitutes the export of goods which are zero-rate traders.

Article 11 of the former Value-Added Tax Act

2014Guhap50378 Disposition to revoke the imposition of value-added tax

AA

a) the Director of the Tax Office

May 23, 2014

June 27, 2014

1. The Defendant’s refusal to refund value-added tax of KRW 000 on July 4, 2013, which was imposed on the Plaintiff on July 4, 2013, and revocation of each disposition imposing KRW 000 (including additional tax).

2. The costs of the lawsuit are assessed against the defendant.

The same shall apply to the order.

1. Details of the disposition;

A. From December 1, 2005, the Plaintiff runs a wholesale and retail business with the trade name of “W” from Jongno-gu Seoul Metropolitan Government 247, Jongno-gu 247. The Plaintiff is running a business for office supplies and miscellaneous retail business. In the two taxable periods of February 2012, Colombia and friendly.

For the Republic of Korea overseas diplomatic missions located in Korea, such as Ireland, Pakistan, Finland, lebane, Lebane, the Philippines, Kenya, and Libyia.

00 won food and other goods were supplied (hereinafter referred to as the "transaction of this case").

B. On January 25, 2013, the Plaintiff reported a refund of value-added tax of 000 won to the Defendant on the ground that “the instant transaction is an export transaction to which zero tax is applicable under the Value-Added Tax Act.”

However, on July 4, 2013, the Defendant rejected the application for refund on the ground that “the instant transaction does not constitute export of goods”, and notified the Plaintiff of the rectification of KRW 000 of the value-added tax (including the additional tax) for the second period of value-added tax in 2012.

C. The Plaintiff appealed and filed an appeal on September 11, 2013, but was dismissed by the Tax Tribunal on December 4, 2013.

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

2. Details of the instant disposition

taxpayer who is a tax authority is omitted or omitted in the tax base or amount of tax already reported or refunded;

Tax amount to be reduced or paid pursuant to Article 21(1) of the Value-Added Tax Act on the existence of errors;

Where a decision of correction to increase the amount of additional tax has been made, the tax obligation arising from the original return.

Since the final binding power cannot be maintained any longer, a taxpayer may substitute for a decision of correction by the tax authority as above.

(1) A lawsuit seeking revocation of a decision of correction to be paid the original return amount.

by means of filing a lawsuit (see Supreme Court Decision 2000Du7520, Oct. 26, 2001).

On the other hand, the Defendant imposed a value-added tax of KRW 000 on February 2012, and the Plaintiff sought the revocation of the imposition of KRW 000. Accordingly, the Defendant’s imposition of KRW 000. The Defendant’s imposition of KRW 000 is subject to the imposition of KRW 00. The Plaintiff’s imposition of KRW 00 is subject to the imposition of KRW 00. The subject of the Plaintiff’s claim for revocation is two dispositions, and it is reasonable to view that the instant disposition is combined with a new disposition of refusal of refund and a new disposition of imposition (hereinafter “instant disposition”).

3. Whether the instant disposition is lawful

A. The plaintiff's assertion

The plaintiff supplied domestic products to overseas diplomatic missions and their employees in accordance with orders.

This is an "export" of Article 11 (1) of the Value-Added Tax Act, because domestic goods are exported from a foreign country to a foreign country.

It should be viewed that the other party to the transaction is a non-resident, and the grounds for limiting and interpreting the "export" in case of non-resident

The fact that there is no previous tax authority, the tax authority interpreted the supply transaction of goods to diplomatic missions abroad as export transaction;

Liquor tax on alcoholic beverages that are exported in the same manner as zero-rate tax rate prescribed in the Value-Added Tax Act.

The interpretation of Article 29 (1) 1 of the Enforcement Decree of the Act also provides alcoholic beverages for the overseas space.

An export transaction is interpreted as an export transaction, and an overseas diplomatic mission member supplied by the plaintiff to an overseas diplomatic mission;

If the disposition of this case is unlawful and thus revoked because it is deemed to be subject to value-added tax, although it includes unprocessed foodstuffs or symbols, such as goods for personal use, straws, and implements, but it does not distinguish them, it is deemed to be subject to value-added tax en bloc.

(b) Related statutes;

It is as shown in the attached Table related statutes.

(c) Fact of recognition;

(1) The Plaintiff received orders by facsimile or e-mail from the person in charge of administrative affairs of Korean diplomatic missions at overseas diplomatic missions, and purchased goods necessary for the event at overseas diplomatic missions, and then deliver them to the Plaintiff’s diplomatic missions at overseas diplomatic missions via OAC or XX Co., Ltd.

The price of goods shall be paid to the account.

(2) The OOA Co., Ltd. shall provide the Plaintiff with respect to diplomatic missions abroad dealt with by OO aircraft.

With respect to air cargo transport services, the Ministry of Foreign Affairs shall, with respect to air cargo delivery services requested by ear to deliver from abroad.

It is being packed and delivered separately only by the same method as the diplomatic bags, and the transport charges of the air freight to be delivered are also claimed separately from the transport charges of the diplomatic bags."

was written. The letter was drawn up.

(3) The Ministry of Foreign Affairs is the Seoul Regional Tax Office with respect to goods for events supplied to diplomatic missions abroad and daily necessities.

The answer was made as follows.

The diplomatic mission of the Republic of Korea is ordering the domestic company (W, etc.), and the domestic company is requesting the operation support office of the Ministry of Foreign Affairs to send the documents to the diplomatic mission abroad through diplomatic bags, if the goods for the use of the event or the daily necessities are required.

○○ The Ministry of Foreign Affairs’s headquarters (the planning and coordination office, each office, and bureau) shall allocate the monthly government agency operation expenses and operating expenses for each mission at the beginning of each year and shall send them each quarter. Pursuant to the relevant provisions, the diplomatic mission abroad shall report the monthly agency operation expenses accounting statement to the headquarters of the Ministry of Foreign Affairs, and shall report the monthly government agency operation expenses accounting statement to the headquarters by January 5 of the following year if the annual fiscal year ends.

○ The Ministry of Foreign Affairs pays the cost of supporting the cost of supplying raw materials according to the region and class so that the employees of the local diplomatic missions having difficulties in living environment can purchase raw materials, and pays the air transport fee to the entrusted port construction (OA) within the scope of the upper limit thereof.

Commodities purchased by ○ overseas diplomatic missions from domestic enterprises (W, etc.) according to their own demand shall be paid directly to the relevant business entity for the expenses of the diplomatic missions remitted by the relevant overseas diplomatic missions to the headquarters.

Since diplomatic missions established and operated in accordance with the "Act on the Establishment of Overseas Diplomatic Missions of the Republic of Korea" are carrying out an accounting operation independently from the headquarters of the Ministry of Foreign Affairs in accordance with the relevant regulations, the headquarters of the Ministry of Foreign Affairs is not necessarily required to supply related goods to overseas diplomatic missions. However, overseas diplomatic missions purchase necessary goods within the budget allocated at the beginning of each year through domestic companies and directly transfer them to the relevant companies.

[Ground of recognition] Evidence No. 1-2, Evidence No. 38-71, Evidence No. 3, Evidence No. 3, and the purport of the whole pleadings

D. Determination

(1) According to Article 11(1)1 of the Value-Added Tax Act, as to the supply of "exported goods"

Enforcement Decree of the Value-Added Tax Act (Presidential Decree No. 24359, Feb. 15, 2013) shall apply the zero tax rate.

According to Article 24(1)1 of the amended Act, export is a foreign country with domestic goods.

to be taken out means "to be taken out".

Meanwhile, according to each subparagraph of Article 24(2) of the Enforcement Decree of the Value-Added Tax Act, goods supplied by a business operator on the basis of a local letter of credit or a written confirmation of purchase prescribed by Ordinance of the Ministry of Finance and Economy (Article 1), goods supplied by the business operator to the Korea International Cooperation Agency or the Korea International Healthcare Foundation (Article 2 and

In the case of goods (paragraph (3) supplied by trade and export methods, the goods are included in such exported goods;

The zero-rate tax rate is applied. Under the VAT system, the zero-rate tax is levied and collected at the stage of production and supply in international trade of goods or services and at the importing country.

Customs duties and trade in order to prevent double taxation in the case of imposing the Si value-added tax.

Recognizing in principle only exports in accordance with the General Agreement (GTT) consumption taxation principles;

Foreign exchange may also apply to domestic consumption, where such export may apply to domestic consumption

Countries that encourage foreign exchange earnings within the scope of not impairing management and the collection order of value-added tax;

Exceptional and limited recognition is made only in accordance with policy objectives (see Supreme Court Decision 2005Du12718, Jun. 14, 2007).

(2) Article 11(1) of the Value-Added Tax Act provides that the instant case shall be construed as a health stand.

Article 24 (1) 1 of the Enforcement Decree of the Value-Added Tax Act; Article 24 (2) of the Enforcement Decree provides that "foreign shipping of domestic goods" shall be subject to zero tax rate; Article 24 (1) 1 of the Enforcement Decree provides that "foreign shipping of domestic goods is not limited to non-residents;" Article 24 (2) of the Enforcement Decree provides that "export" under Article 11 (1) 1 of the Value-Added Tax Act is not a basis for restrictive interpretation; Article 26 (1) of the Enforcement Decree provides that "export" under Article 11 (1) 4 of the Value-Added Tax Act is not a provision for "export" under Article 11 (1) 1 of the Value-Added Tax Act; Article 26 (1) of the Enforcement Decree provides that "foreign shipping of domestic goods" shall be interpreted as "foreign shipping of goods" under the wording; (2) overseas diplomatic missions are parties to the contract, and thus, they shall be deemed to be the parties to the export declaration of goods directly to the Plaintiff and overseas diplomatic missions within budgetary limits."

Thus, the claim of this case is justified, and it is decided as per the Disposition.

(c)