The meaning of Article 9 (3) of the Value-Added Tax Act where a tax invoice is issued prior to the arrival of the actual transaction

The term "in case where a tax invoice is delivered before the actual transaction date as referred to in Article 9 (3) of the Value-Added Tax Act means the case where a supplier delivers an authentic copy of the tax invoice to a person who is supplied with goods or services or a person who is to be supplied with such services, and it does not include the case where

Article 9 (3) of the Value-Added Tax Act

Supreme Court Decision 83Nu639 delivered on April 10, 1984; 84Nu47 delivered on April 23, 1985

Attorney Lee Jae-chul et al., Counsel for the defendant-appellant

The director of the Southern Incheon District Office

Seoul High Court Decision 84Gu960 delivered on May 14, 1985

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal by the defendant litigant are examined.

Article 9(3) of the Value-Added Tax Act provides that where a tax invoice is issued under Article 16 of the same Act prior to the arrival of the actual transaction time of goods or services, the time of issuance shall be deemed the time of supply of the goods or services concerned. Here, the case where a tax invoice is delivered prior to the arrival of the actual transaction time means the case where a supplier delivers the authentic copy of the tax invoice to a person who is supplied with or is to be supplied with the goods or services, and it does not include the case where a copy of the tax invoice is delivered to any other third party (see, e.g., Supreme Court Decision 83Nu639, Apr. 10, 1984; 84Nu47, Apr. 23, 1985). According to the reasoning of the judgment below, the plaintiff is just in supplying export goods by a local letter of credit, and it is not erroneous in the misapprehension of legal principles as to the delivery of the tax invoice before the delivery of the goods or services, and it is not legitimate in the issuance of the tax invoice to the above third party.

Therefore, the appeal is dismissed, and the costs of the appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Shin Jong-sung (Presiding Justice)