2012년 부가가치세 및 소비세법 판례회고

Based on the dates of decisions, 8 Supreme Court decisions related to value- added tax (“VAT”) were reported while there were 85 unreported Supreme Court decisions on the same issue during 2012. Focusing on the reported decisions and analyzing them along with unreported decisions that has signi- ficant influence on legal principles related to VAT, most of the decisions were noteworthy as they, rather than re-confirming precedents, suggested clear interpretations for specific cases, or suggested the Supreme Court’s official positions on cases with conflicting views or unclear interpretations. Furthermore, with respect to a decision related to Consumption Tax Act, the Constitutional Court rendered a decision on a provision of Individual Consumption Tax Act that assessed tax on the admission fee for golf courses. Examining 5 Supreme Court cases in accordance with the tax regime under VAT Act, the Supreme Court made clear that transaction of selling game money, a cyber currency in which there was controversy over whether trans- actions in such currency should be taxable, was a supply of goods, a VATable transaction. With respect to scope of place that can be applied provisions on proportional division for common input VAT, attention should be given to the first decision that suggested principle of assessment by place of business instead of confirming existing mainstream views and administrative rulings on the issue. In connection with taxpayer for VAT in a trust, although the issue has been discussed in depth during the on-process of amending the VAT Act, the Supreme Court still is maintaining its past position that the settlor or the beneficiary should be considered the taxpayer in accordance with provisions on sale and purchase by consignment as prescribed by Article 6(5) of the VAT Act. Moreover, even though the decision was somewhat abstract, the Supreme Court suggested a standard to determine relationship of input VAT to business for deduction of input VAT, and sought specific validity for such standard. Finally, with respect to whether a taxpayer is required to report within statutory deadline inventory and depreciable assets if the type of taxation was changed from simplified to ordinary, the Supreme Court suggested a new interpretation regarding provisions on reporting procedures for deduction of inventory input VAT by agreeing with the taxpayer’s perspective on the theory of unnecessity of reporting. In particular, a project to rewrite the tax laws (VAT Act) began in earnest led by the Ministry of Strategy and Finance this year. The project was a visible success as it led to submission of proposed amendments for the entire VAT Act to the National Assembly on November 5, 2012. Due attention should be given to whether the interpretation of tax laws on VAT expressed by the Supreme Court will be legislatively accepted.