The meaning of a person who supplies goods or services independently from the business under Article 2 (1) of the Value-Added Tax Act.

Since value-added tax is a tax on the value added at each stage of production and distribution, a person who supplies goods or services independently from a business under Article 2 (1) of the Value-Added Tax Act, which provides for a taxpayer of value-added tax, means a person who supplies goods or services with a continuous and repeated intention, meeting the business form to create a value-added.

Article 2 (1) of the Value-Added Tax Act

Supreme Court Decision 84Nu629 Delivered on December 26, 1984

[Judgment of the court below]

Head of Sungbuk Tax Office

Seoul High Court Decision 85Gu926 delivered on February 19, 1986

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

Since value-added tax is a tax that imposes a value added at each stage of production and distribution, a person who supplies goods or services independently from the business under Article 2 (1) of the Value-Added Tax Act, which provides for a taxpayer of value-added tax, must be treated as a person who supplies goods or services with the intention of repeatedness in the form of business to create a value-added.

According to the reasoning of the judgment below, the court below confirmed that the plaintiff purchased from the non-party on June 1, 1982 the price of KRW 29 in Seongbuk-gu Seoul ( Address 1 omitted) 23,000,000, and constructed one house under the plaintiff's name on it, while paying KRW 19,60,000,00 out of the purchase price of the above site, the non-party constructed one house on the building site of KRW 49,00 on the non-party. Since the plaintiff's act of newly building and supplying one house to the non-party is temporary due to the payment method of the purchase price of the real estate, it does not constitute a person who supplies the non-party with independent services under Article 2 (1) of the Value-Added Tax Act, and therefore, it is just in accordance with the above opinion, and even if the plaintiff newly building two houses within one taxable period, it is difficult to view that the plaintiff's new construction of one house only constitutes a new one's own house and has an intent to create goods or services.

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

Justices Kim Jong-sik (Presiding Justice)