Article 105-2 (Special Cases concerning Value-Added Tax Refund for Agricultural, Forestry, and Fishery Equipment)

The head of a tax office falling under any of the following subparagraphs (hereinafter referred to as the "competent head of a tax office" in this Article) may refund the amount of value-added tax paid at the time of purchasing or directly importing equipment (limited to equipment purchased from a general taxpayer under Article 2 (5) of the Value-Added Tax Act) that farmers, foresters, and fishermen (hereinafter referred to as "farmers, etc." in this Article) prescribed by Presidential Decree purchase or directly import for use in agriculture, forestry, or fishing, to such farmers, etc., in accordance with Presidential Decree. <Amended by 2011.12.31, 2013.6.7, 2014.12.23> 1. The head of a tax office with jurisdiction over the place of business of the refund agent under paragraph (3), when applying for a refund through the refund agent. 2. In cases other than subparagraph 1, the head of a tax office with jurisdiction over the place of business of the relevant farmer, etc.

Farmers, etc., who intend to receive a refund under paragraph (1) shall apply for the refund through any of the following entities (hereinafter referred to as "refund agent" in this Article). However, persons prescribed by Presidential Decree may apply for the refund directly to the head of a tax office with jurisdiction over their place of business. <Amended by 2014.12.23, 2015.12.15> 1. Cooperatives under the 「Agricultural Cooperatives Act」. 2. Cooperatives under the 「Fisheries Cooperatives Act」. 3. Leaf tobacco production cooperatives under the 「Leaf Tobacco Production Cooperatives Act」. 4. Cooperatives under the 「Forestry Cooperatives Act」.

The competent head of a tax office shall recover the refunded value-added tax amount, along with an imputed interest amount calculated in accordance with Presidential Decree, as value-added tax, if a person who received a refund of value-added tax under paragraph (1) falls under any of the following subparagraphs. <Amended by 2014.12.23, 2020.12.29> 1. When farmers, etc., do not use the equipment for which they received a value-added tax refund under paragraph (1) for its original purpose, or transfer it to persons other than farmers, etc. 2. When farmers, etc., receive a value-added tax refund based on a tax invoice falling under any of the following items: a. A tax invoice issued without the supply of goods. b. A tax invoice issued in the name of a place of business other than the place of business where the goods were supplied. c. A tax invoice issued after the deadline for final reporting for the tax period to which the supply date of the goods belongs. d. A tax invoice that was legitimately issued and then arbitrarily modified by the relevant farmers, etc. e. Other tax invoices with incorrect information as prescribed by Presidential Decree. 3. When a person who is not a farmer, etc., receives a value-added tax refund under paragraph (1).

If farmers, etc., fall under any of the following subparagraphs, they shall not receive a refund under paragraph (1) for two years from the date of notification of the 추징세액 (Chuing Sae-aek - recovered tax amount) that meets the relevant requirements. <Amended by 2014.12.23> 1. When value-added tax has been recovered three or more times within the past two years under paragraph (5). 2. When the aggregate amount of tax recovered under paragraph (5) exceeds an amount prescribed by Presidential Decree, which is 2 million won or more.

Matters necessary for refund procedures, submitted documents, etc., when applying paragraphs (1) through (8) shall be prescribed by Presidential Decree.