Seoul Administrative Court 2008Guhap1323 ( August 14, 2008)

Whether calculating the tax base by applying the dividend rate to the face value of merchandise coupons falls under the method of estimated correction.

The merchandise coupon game room is distinguished from gambling prohibited by law as a business subject to value added tax because it is distinguished from gambling prohibited by law. The merchandise coupon's total face value and revenue amount are proportional relations between the sales rate and the sales rate, so the expense relation ratio can be calculated. The merchandise coupon's nature of the merchandise coupon's subsidy is the nature of the merchandise coupon's subsidy, and it is not deducted

The contents of the decision shall be the same as attached.

Article 7 (Supply of Value-Added Tax Act)

1. The plaintiff's appeal is dismissed.

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

The decision of the first instance is revoked. The defendant's imposition of value-added tax for the second period of February 14, 2007 283,030,720 won for the plaintiff, value-added tax for the first period of February 14, 2006 926,337,390 won for the first period of 206, and value-added tax for the second period of 2006 53,178,160 won for the second period of 206 shall be revoked.

1. Quotation of judgment of the first instance;

The court's reasoning concerning this case is as stated in Article 8 (2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act, except for the following changes among the judgment of the court of first instance. Thus, the court's reasoning is as stated in Article 8 (2) of the Administrative Litigation Act and Article 420 of the same Act.

○ 3 6 6 2 to 13 2 8

A. The plaintiff's assertion

(1) The business of the game site of this case is the same as that of a speculative gambling, and thus cannot be subject to value-added tax.

The gift certificates paid by the Plaintiff to the game machine users can not be imposed value-added tax on the transaction of such money or currency substitute securities with monetary substitute securities. Thus, it is limited to the provision of goods, such as gift certificates provided by the Plaintiff to the game machine users, and the provision of services, such as the use of the game machine. Therefore, the part corresponding to the face value of the gift certificates out of the amount input in the game machine does not constitute a transaction subject to taxation. Therefore, in calculating the value of supply (total sales) related to each disposition of this case,

Article 13 (2) 1 of the Value-Added Tax Act shall be deducted from the tax base on the ground that the value of the merchandise coupons falls under the discount amount prescribed in Article 13 (2) 1

○ Change of the content of subsection (d) from one parallel to four parallels under the 5th parallel parallel:

D. Determination

(1) Whether the business in the game of this case is subject to value added tax

Even if there are some characteristics of speculative act in the game of this case as a speculative act in the game of this case, the game machine installed in the game of this case is classified according to the standard for handling premiums at the game of this case (amended by the Ministry of Culture and Tourism No. 2006-24 of Nov. 1, 2006). It is limited to only one game time or the face value of merchandise coupons discharged. The amount invested in the game of this case can be attributed to all game operators, and the gift certificates can be attributed to the game of this case, but they are not returned to the users without the game of this case. Thus, it cannot be concluded that the game of this case is gambling or speculative act. ② The game user of this case's game of this case's game of this case's game of this case's game of this case's game of this case's game of this case's game of this case's game of this case's game of this case's room does not create any value added tax differently from the provision of other services, and even if it does not create value added value-added tax on the game of this case's.

Dod Value-Added Tax Base, Whether the gift certificate value is deducted

Article 1 (1) 1 of the former Value-Added Tax Act (amended by Act No. 8142 of Dec. 30, 2006; hereinafter referred to as the "Act") provides that "supply of goods or services" shall be subject to value-added tax, and Article 13 (1) of the Act provides that "all services and other acts having property value other than goods" shall be "total value-added tax base for supply of goods or services" and Article 13 (3) of the Act provides that "value-added tax base for money shall be the total value falling under each of the following subparagraphs," while Article 1 (3) provides that "value-added tax shall not be deducted from the tax base for the supply price of goods or services after the provision of goods or services by users, because the contents and purport of each of the above provisions, Korea, which adopts the pre-stage tax credit method, shall be deemed to have no possibility to easily impose value-added tax on the users of merchandise coupons, regardless of the concept of "value-added tax" and "value-added tax base" for each game service provider's.

Abstract Whether the value of gift certificates corresponds to the discount amount

Article 13 (2) 1 of the Value-Added Tax Act refers to the direct deduction of a certain amount from the ordinary supply value at the time of supply of goods or services in accordance with the quality, quantity, settlement of the cost of delivery and supply, and other terms and conditions of supply in the supply of goods or services (see Article 52 (2) of the Enforcement Decree of the Value-Added Tax Act). Since it is difficult to view that the value of gift certificates in the game of this case falls under the above discount amount, the Plaintiff’s assertion on this part

2. Conclusion

Therefore, the plaintiff's claim shall be dismissed as it is without merit, and the judgment of the court of first instance shall be just and it shall be dismissed as the plaintiff's appeal. It is so decided as per Disposition.