An input tax amount deduction for the tax invoice delivered after the time of supply for services;

The time of supply for "other conditional services supplied" is the time of supply for each service, and the tax invoice delivered after the time of supply for the service is the time of supply shall be the tax invoice different from the fact that the input tax amount is not deducted.

Article 9 of the Value-Added Tax Act

Time of supply for services under Article 22 of the Enforcement Decree of the Value-Added Tax Act

All of the plaintiff's claims are dismissed.

Litigation costs shall be borne by the plaintiff.

1. Details of the disposition;

A. The Plaintiff is a company that runs the business of newly constructing a condominium in ○○do ○○○○ ○○○-gun ○○○○○○ 765-81 and selling membership rights.

B. Nonparty ○○ Construction Co., Ltd. (hereinafter “○○○ Construction”) was an implementer and a contractor from around 196 to ○○○○○○○○○-gun, ○○○○○○ 361, and one parcel of land located (hereinafter “instant contact”) and suspended construction due to the aggravation of economic conditions due to the crisis of foreign exchange around the end of 1997.

C. On April 2003, the Plaintiff and ○○ Construction agreed that the Plaintiff will take over all of the instant project site and the instant containers from ○○ Construction to 2.2 billion won, and the ○ Construction agreed that the Plaintiff will perform the instant container construction work (hereinafter referred to as the “instant construction”) by being awarded a contract from the Plaintiff.

In addition, the Plaintiff and ○○ Construction entered into this Agreement on July 2003, and the method of distributing the price according to the instant construction project at the time of the conclusion of the Agreement on Business Transfer and Acquisition, but did not set the total amount of the specific contract amount as follows. (c)(2)(e).

D. The Plaintiff paid to ○○ Construction KRW 2,335,878,00 on January 5, 2004 as the construction price of the instant case; KRW 359,430,00 on February 12, 2004; KRW 345,720,00 on March 9, 2004; and KRW 345,720,00 on March 31, 2004 as the supply price of KRW 3,041,030,212 on March 31, 2004 as the payment of each of the said construction price (hereinafter “instant tax invoice”).

E. The Defendant considers that the tax invoice of this case was a tax invoice prepared differently from the actual time of supply, and thus, deducted input tax amount on the grounds that (i) the portion relating to the construction cost of September 5, 2003 among the construction cost of January 5, 2004, and (ii) the portion relating to the construction cost of November, 2004, which is the construction cost of KRW 1,674,890,114, from the tax invoice of this case, was not received within the same taxable period; and (ii) the tax invoice of this case, from the construction cost of January 5, 2004, concerning the construction cost of December 894,576,486, 204, and the construction cost of February 12, 204, and the portion relating to the construction cost of March 9, 2004, constitutes a case where it was received within the same taxable period; and (iii) the input tax amount was subject to unfaithful imposition of additional tax.

Since then, the defendant revoked the imposition of additional tax on March 9, 2004 on the part concerning the construction price as of March 31, 2006, on the ground that there was a part concerning the excessive deduction of the input tax deduction amount (hereinafter referred to as "disposition of this case") and decided to reduce the amount of KRW 4,194,00 as additional tax (hereinafter referred to as "disposition of this case").

[Grounds for Recognition: Facts without dispute, Gap evidence 1, 8, Eul evidence 1 and 2 (including each number), the purport of the whole pleadings]

2. Whether each of the dispositions of this case is legitimate

A. The plaintiff's assertion

From January 5, 2004 to March 9 of the same year, when the Plaintiff paid the construction cost to ○○ Construction as above 1. D, the Plaintiff entered into only a contract for the transfer and acquisition of the instant containers between the Plaintiff and ○○ Construction, and the instant contract for construction was concluded around March 2004.

Therefore, the above construction cost paid by the Plaintiff to ○○ Construction is an advance payment made under the condition that the obligation to rights is not determined before the contract is concluded. Therefore, the time when ○○ Construction delivers the instant tax invoice to the Plaintiff should be deemed the time of supply for services or goods.

Therefore, even though the tax invoice of this case is based on the actual time of supply, it is unlawful to deduct the input tax amount on the premise that the tax invoice of this case is a tax invoice different from the actual time of supply, and impose the penalty tax.

(b) Related statutes;

The entries in the attached Table shall be as follows.

(c) Fact of recognition;

(1) On April 2003, the Plaintiff entered into an agreement with ○○ Construction to take over the instant project site, rights and obligations related to the instant container business from ○○ Construction (hereinafter referred to as the “Agreement on April 2003”). The main contents are as follows.

(A) ○○ Construction entered into this Agreement to transfer to the Plaintiff all the rights and obligations relating to the instant construction project currently in force and in execution, and promote a prompt promotion of the project by stipulating the rights and obligations of both parties prior to the conclusion of this Agreement, the terms and conditions of this Agreement, etc. on the premise that the contract will be entered into in the future.

(B) ○○ Construction is to perform the new construction of the instant container as the contractor and contractor, and the execution, transfer and acquisition (this contract) of important matters and the conclusion of the contract for the construction will be until May 31, 2003.

(C) The acquisition price for the business site and business right transferred by the Plaintiff is 2.2 billion won, and the contract deposit is 200 million won, at the time of the conclusion of the agreement, and the balance is 2 billion won at the time of the conclusion of the agreement.

(d) Payment for the completed portion of the project shall be paid as the deposited amount of the sale price, and the two shall be paid in proportion to the agreed rate of payment by opening a joint passbook.

(2) In accordance with the agreement on April 2003, the Plaintiff entered into this contract with ○○ Construction around July 2003, and the transfer and acquisition of business. The main contents are as follows.

(A) Upon entering into a contract for transfer or acquisition of the business to transfer all rights and obligations relating to the new construction of the instant containers currently in force and in execution to the Plaintiff, ○○ Construction entered into a contract for transfer or acquisition of the instant agreement on April 2003 and the subject matter of the contract prior to entering into a contract for construction works, on the premise that the contract for construction works is to be entered into.

(B) The Plaintiff and ○○ Construction will enter into a contract for construction works until October 31, 2003 when the conditions for the calculation of the contract amount were met after the completion of working plans.

(C) Under this contract, ○○ Construction is a contractor and contractor, and the Plaintiff is a project implementer and contractor.

Accordingly, the main duties of ○○ Construction are ① all construction works except for the part of the Plaintiff’s construction work (such as construction civil engineering, electrical equipment, fire fighting, interior interior interior interior interior interior interior interior interior interior interior interior interior interior interior design specification and specifications) among the buildings newly constructed through the project (the main duties of the Plaintiff are ① construction of a hot spring site, a restaurant related to a hot spring site, a restaurant related to a hot spring resort, a subsidiary business, a house, a house, a construction for landscaping, ② direct construction for the entire construction of a hot spring site, ② intermediate payment for ○○ Construction, remainder payment, and future contract construction cost.

(D) Upon entering into a contract for construction works, the contract amount for construction works shall be determined by an agreement on the approval of the project plan and the estimate of both parties implemented under the amended construction permit drawings.

Upon entering into a contract for a construction project, the contract amount shall be ① the cost of the existing design service and financial costs, ② the contract amount for the construction project for the portion of the existing construction project (the completed portion of the project up to the date of the conclusion of this contract) shall be the cost of the construction project (up to the date of the conclusion of this contract), and ③ the contract amount for the construction project for the portion of the new construction project

(e)The terms and conditions of payment for the construction cost of the construction project shall be paid in accordance with the following rates of payment distribution of proceeds from sale deposited in the joint account.

No.

Criteria

Period

Payment Distribution Ratio (%)

Jinay

○ Construction

1

Joint Administration

The passbook for sale

Deposit Balance

Warrant Initial

By December 31, 2003

20

80

Standard for Balance of Deposits

§ 30,000.

Aftermath of the year; and

§ 302.

2

From January 1, 2004 to June 30, 2004

30

70

3

From July 1, 2004 to the completion date;

40

60

4

Until the full payment of construction cost after completion

50

50

Provided, That the payment rate may be adjusted by the agreement between the plaintiff and the ○○ Construction after the rent, and for the substitute payment, it shall be excluded from the distribution of sales revenue.

(f) The date and time of the settlement of the construction cost shall be settled on the basis of the last day of each month and shall be automatic transfer payment on the first day of the following month.

(g) As of the date of the conclusion of this contract costs for repair, reinforcement, and removal works for the building completed parts shall be charged prior to ○○ Construction and shall be reflected thereafter at the time of the contract.

(h) If the contract for a construction project is not entered into, the contract will lose its effect, and if it loses its effect, the full amount received, such as the down payment, received within seven days from the date of loss of the contract.

(3) On March 2004, the Plaintiff entered into a provisional contract with ○○ Construction and the instant construction contract, and the main contents are as follows.

(A) The purpose of the instant contract is to stipulate the important matters to be included in the conclusion of this contract and the rights and obligations to be fulfilled by both parties until the conclusion of the contract, as the final and conclusive construction amount based on the business agreement of April 2003 and the basic spirit of the transfer and acquisition contract of July 2003, 203, as well as the final construction amount based on the basic spirit of

(b) Provisional contract amount: 34,687,356,000 won (including value-added tax);

(C) The final contract is concluded by August 15, 2004 when comparing a quotation, and the criteria for the calculation of the construction cost shall be the cost of construction under the transfer and acquisition contract before July 2003. In the event that there is no mutual agreement on the cost of construction work at the time of the conclusion of this contract, the contract amount shall be modified on the basis of the cost of actual order for the relevant type of work.

(d) enter into this Agreement immediately after the determination of the cost of construction, and this Agreement shall have the same effect as the Agreement of April 2003 and the Transfer and Acquisition Agreement of July 2003.

(4) On February 2005, the Plaintiff finally agreed on the contract amount between ○ Construction and the contract amount and made up the contract amount. The main contents are as follows.

(A) The contract amount for new construction of the instant container shall be KRW 30,824,00,000 (excluding value-added tax).

(B) 80% of the sales revenue accrued from January 1, 2005 as modified from the content of the contract for transfer and acquisition entered into on July 2003 shall be paid first to the time the sales is completed.

(C) This contract shall take precedence over the contract between the Plaintiff and ○ Construction on April 2003, the contract for transfer and acquisition on July 2003, and the contract for contract for construction on March 2004.

(5) Around July 21, 2003, 2003, ○○○ Construction received a modified design drawing related to the modification of the business plan from the non-party corporation, and filed an application for modification of the business plan with the ○○ Military Office. On August 9, 2003, the Plaintiff filed an application for modification of the construction permit with the ○○ Military Office.

(6) Around September 2003, 2003, ○ Construction performed re-establishment works of other workshops, and removal of design and structural reinforcement works around October 2003. The Plaintiff and ○ Construction commenced the instant construction work on September 30, 2003.

(7) The details of the Plaintiff’s payment of the construction cost for the instant construction project to ○○ Construction, and the receipt of the tax invoice are as follows.

(unit:,000 won)

Date of payment (subject period)

Final amount eligible for distribution;

Distribution Ratio

Distributed amount

Value of Supply

Date of issuance of tax invoice

Value of Supply

January 5, 2004 (from September to November)

8,384,450

20%

1,647,890

1,522,627

Mar. 31, 2004. 1

January 5, 2004 (Monthlys)

4,472,882

20%

894,576

813,251

204.3.2

Total amount of transactions in 2003

12,847,33

1,569,466

2,335,878

d February 12, 2004

1,317,913

30%

395,374

359,430

Mar. 31, 2004

9, 2004

1,267,641

30%

380,292

345,720

No. 31.31. 2004

3,041,030

o April 8, 2004

2,202,883

30%

660,865

600,786

April 30, 2004

600.786

may 13, 2004

2,072,319

30%

621,695

565,178

May 31, 2004

565,178

4, 2004

2,069,961

30%

620,988

564,535

6.6.30

564,535

1, 2004

2,435,649

4,771,527

The tax invoices, (1), (2), (3), and (4) were issued and delivered en bloc in the instant tax invoices.

[Ground for Recognition: Facts without dispute; Gap evidence Nos. 8; Eul's statements in Articles 3 through 13, 16 through 26 (including each number), witness's partial testimony, and the purport of the whole pleadings]

D. Determination

(1) Article 9(2) of the Value-Added Tax Act provides that "the time when the service is supplied shall be the time when the service is supplied or when the goods, facilities or rights are used," and Article 22 of the Enforcement Decree of the same Act provides that "the time when the service is supplied under Article 9(2) of the Act; 1. In the case of ordinary supply, the time when the service is supplied is completed; 2. Where the service is supplied on the basis of the standard payment, interim payment, long-term installment or on other terms, or the service is continuously supplied on the basis of which the unit of supply cannot be divided, the time when each part of the price is paid; 3. Where the provisions of subparagraphs 1 and 2 cannot be applied, the time when the service is completed

(2) Along with this case, the following circumstances revealed in the facts of recognition of the above 2.c., i.e., ① from the time when the Plaintiff agreed to take over all of the instant compound projects from ○○ Construction around April 2003, the Plaintiff agreed to give a contract for construction work to ○○ Construction. Accordingly, around July 2003, when the Plaintiff and ○○ Construction enter into a contract for the transfer and acquisition of the instant compound projects, the Plaintiff agreed to pay the instant construction cost to ○○ Construction. Around February 2005, there was no change in the terms of the contract between the Plaintiff and ○○ Construction until the date when the contract for the instant construction was entered into.

Furthermore, according to the facts of recognition under Paragraph (c) above, the terms and conditions of the payment of the construction cost of the Plaintiff and ○○ Construction Contract for the instant containers are as follows: (a) the sale price is in progress according to the progress rate of construction works and is to be paid according to the ratio of the construction cost according to the allocation of the completed construction cost on July 2003; and (b) the sale price is to be paid as the construction cost according to the ratio of the project transfer and acquisition contract completion; and (c) the supply price of other conditional services under Article 22 subparagraph 2 of the Enforcement Decree of the Value-Added Tax Act regardless of

Therefore, as recognized in paragraph 2. (c), the time of supply for the service related to the construction of this case, which provides that the monthly amount of sales revenue shall be paid on the 1st day of the following month, among the monthly amount of sales payment, is the 1st day of each following month. Thus, the portion concerning the construction amount corresponding to September through November 11, 2003, among the tax invoices of this case drawn up as of March 31, 2004, is not a case where the tax invoice was delivered after the time of supply for the service, but is not a case where the tax invoice was delivered after the time of supply for the service, and the portion concerning the construction payment as of February 12, 2003 and February 12, 204, which was delivered after the time of supply for the service, was delivered within the taxable period to which the time of supply belongs, but it constitutes a different tax invoice from the fact that the time of supply was drawn up, and thus, the Plaintiff's assertion on the construction amount of this case's portion falling under Article 23.

3. Conclusion

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

Relevant statutes

Article 9 (Transaction Time of Value-Added Tax Act)

(2) The time when the services are supplied shall be the time when the services are supplied or goods, facilities or rights are used.

(4) Matters necessary for the time of supply under paragraphs (1) and (2) shall be prescribed by Presidential Decree.

Article 16 (Tax Invoice)

(1) Where an entrepreneur registered as a taxpayer supplies goods or services, he shall deliver an invoice stating the matters falling under each of the following subparagraphs (hereinafter referred to as “tax invoice”) to the person who receives the supply as prescribed by the Presidential Decree: Provided, That in the case as prescribed by the Presidential Decree, the delivery time may vary:

1. Registration number, name or denomination of the businessman who provides;

2. Registration number of the person who receives;

3. Supply value and value-added tax;

4. Date of preparation.

5. Matters as prescribed by the Presidential Decree other than those under subparagraphs 1 through 4.

Article 17 (Payable Tax Amount)

(2) The following input tax amounts shall not be deducted from the output tax amount:

1. An input tax amount in case where the list of the total tax invoice by customer is not submitted under Article 20 (1) and (2), or the input tax amount on the portion not entered or entered differently from the fact, in case where the whole or part of the registration numbers or supply values by transaction parties in the submitted list of the total tax invoice by customer is not entered or entered differently from the fact, excluding the input tax amount in such

1-2. An input tax amount, in case where the tax invoice as provided in Article 16 (1) and (3) is not delivered, or the whole or part of the matters to be entered under Article 16 (1) 1 through 4 (hereinafter referred to as a “necessary entry items”) is not entered or entered differently from the fact on the delivered tax invoice: Provided, That the input tax amount in such case as prescribed by the Presidential Decree shall be excluded;

Article 22 (Additional Tax)

(4) Where an entrepreneur falls under any of the following subparagraphs, the amount equivalent to 1/100 of the supply value corresponding to the input tax amount deducted under the tax invoice by the list of the total tax invoice by customer, or the supply value returned by entering excessively differently from the fact in the entry of the list of the total tax invoice by customer, which is submitted, shall be added to the tax amount payable or deducted from the tax amount refundable: Provided, That this shall not apply to the supply value of the

1. Where the input tax amount is deducted under the proviso of Article 17 (2) 1-2, as prescribed by the Presidential Decree; and

Article 22 (Time of Supply for Services)

The time of supply for services under Article 9 (2) of the Act shall be as follows: Provided, That if the time of supply for services supplied before closure of business arrives after such cessation of business, the time of supply for such services shall be deemed the

1. In the case of ordinary supply, when the offer of the service is completed;

2. Where services are supplied on the basis of a standard payment, interim payment, long-term installment or under other conditions, or services are continuously supplied on the basis of which the unit of supply cannot be partitioned, when each part of the price is received;

3. Where the provision of services is completed and the value of supply is determined, in case where the provisions of subparagraphs 1 and 2 are not applicable.

4. In the case of supply values calculated under the provisions of paragraphs 1, 2 and 4 of Article 49-2, the date on which the preliminary return period or taxable period ends.

Article 60 (Scope of Purchasing Tax Amount)

(2) The cases as prescribed by the Presidential Decree in the proviso of Article 17 (2) 1-2 of the Act means any of the following subparagraphs:

1. Where the businessman who has made an application for the business registration under Article 7 (1), has received with the entry of the resident registration number of the businessman or his representative on the trade until the delivery date of the business registration certificate under Article 7 (3); and

2. Where some of the necessary entries of the tax invoice delivered under Article 16 (1) of the Act are erroneously entered, but the fact of transactions is confirmed in view of the relevant tax invoice and other necessary entries or discretionary entries;

3. A tax invoice delivered after the time of supply for goods or services is delivered within the taxable period in which the time of supply is the time of supply.

Article 70-3 (Additional Tax)

(3) For the purpose of the provisos of Article 22 (3) and (4) of the Act, the term “value of supply in which transactions are confirmed under the conditions as prescribed by the Presidential Decree” means the value of supply in which transactions are confirmed by the tax invoice delivered or received.

Article 9 (Time of Supply for Goods or Services)

(1) The supply of goods or services under an interim payment condition as prescribed in Article 21 (1) 4 of the Decree and subparagraph 2 of Article 22 of the Decree shall be any of the following subparagraphs:

1. Where a compensation, other than a down payment, is paid in installments before the goods or goods are delivered, or the furnishing of the service is completed, and the period from the date when payment of the down payment is made to the date when the balance is paid is not less than 6 months;

○ General Rule 17-0-4 of the Value-Added Tax Act (Non-deduction of input tax amount of the tax invoice delivered after the supply timing)

The input tax amount of a tax invoice delivered after the time of supply shall not be deducted or refunded from the output tax amount: Provided, That this shall not apply where a tax invoice delivered after the time of supply for goods or services is delivered within the taxable period to which the time of