중고자동차 의제매입세액공제의 개선방안에 관한 연구

According to Article 108 of the Restriction of Special Taxation Act, since 1992, VAT input tax concerning the Recycle Wastes Act has been providing deductions on the input tax regardless of whether the VAT has been collected or the tax invoice has been received. As such, this study examines practical problems and suggests improvement plans for the Deduction of Deemed Input Tax for used cars among VAT input tax concerning the Recycle Wastes Act. In the case of used car business operators, 10/110 of the purchase price can be deducted through VAT input tax concerning the Recycle Wastes Act, which leads to the issue of the amount of used car purchases in sales contracts being faulty or exceeding the actual amount when reporting VAT. In practice, when the original owner sells a used car through a dealer (intermediate collector), he will write a contract including the dealer fee at the price at which he intends to sell it. Due to these practical problems, used car business operators are forced to receive excessive deductions of input tax based on the written sales contract. In addition, from the perspective of a used car seller who has registered as a business operator, he or she may deny business use to a used car operator and not issue a tax invoice to avoid paying VAT when selling a used car. Furthermore, from the perspective of a used car seller who is registered as a business entity, there are cases where, at the time of purchasing a car, they did not receive a deduction for the purchase tax. Consequently, in order to avoid bearing value-added tax(VAT) when selling the used car, some business sellers deny business use and do not issue tax invoices. As a result, there is a possibility that tax avoidance may occur in Value Added Tax, Corporate Tax, or Income Tax. Improvement plans for this are presented as follows. First, a used car business operator receives the deduction of input tax by multiplying the purchase price by the deduction rate by applying VAT input tax concerning the Recycle Wastes Act to the purchased used car. Since the purchase price determines the amount deducted, there are cases in which VAT is unfairly deducted in practice. Therefore, it is considered desirable to use the standard market price rather than the purchase price in question. Second, even if a business operator intending to sell a used car classifies a car, which was not eligible for input tax deduction at the time of purchase, as a business asset, it is advisable to exempt it from Value Added Tax(VAT) at the time of sale. This measure aims to avoid double taxation and promote transactions in the used car market. Unlike previous studies, this research holds significance by proposing an improvement plan that recommends applying the market price standard, instead of the purchase price, as the criterion for applying VAT input tax under the Recycle Wastes Act. It is also a noteworthy aspect as it suggests excluding used cars designated for business purposes, for which VAT was not deducted at the time of purchase. This proposal aims to enhance tax fairness and prevent tax avoidance.