의제매입세액공제율의 적정성에 관한 연구

[Purpose]This study intends to examine the adequacy of deemed VAT input tax credit rate under the value added tax regime of Korea Republic, which adopts the invoice method. [Methodology]This study makes the analytic reasoning on the problems of the invoice method(catch－up effect and cascade effect), the effect intended by the deemed input credit regime and the adequacy of deemed input tax credit rate through comparative analysis with systems of advanced countries. [Findings]Under the invoice method, input tax credit is allowed only if the tax invoice received from the previous vendor is provided. Therefore business purchase from the tax exempt or zero rated provider is not VAT deductable. Deemed VAT input credit is the resolution of such problem resided in the invoice method. Therefore, the rate of deemed input tax credit shall be raised to 10/110, “VAT Rate/(1＋VAT Rate)”, and the threshold of the credit must be eliminated. [Implications]Deemed VAT input credit is not the preferential tax regime. Rather it is the structural tax relief for the resolution of the problem resided in the invoice method. Therefore, the rate of deemed VAT input credit, threshold, and applied transactions shall be evaluated within such understanding.