Article 105-3 (Special Provisions on Value-Added Tax Refund for Automobiles for Transportation Business)

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 value-added tax paid for automobiles purchased for the transportation business by December 31, 2027, to a taxpayer who operates a passenger automobile transportation business under the 「Passenger Automobile Transport Business Act」 and meets the criteria prescribed by Presidential Decree (limited to simplified taxpayers under Article 61 (1) of the 「Value-Added Tax Act」, hereinafter referred to as "simplified taxpayer for transportation business") in accordance with the Presidential Decree. 1. In cases where a refund is applied for through a refund agent under paragraph (3), the head of the tax office having jurisdiction over the business place of the refund agent. 2. In cases other than subparagraph 1, the head of the tax office having jurisdiction over the business place of the simplified taxpayer for transportation business.

A simplified taxpayer for transportation business who wishes to receive a refund under paragraph (1) may apply for the refund directly to the head of the tax office having jurisdiction over their business place, or through a person who manufactures, assembles, or imports automobiles (including those entrusted with the sale of automobiles by them) and other persons prescribed by Presidential Decree (hereinafter referred to as "refund agent" in this Article).

If a simplified taxpayer for transportation business who received a refund of value-added tax under paragraph (1) falls under any of the following subparagraphs, or if a person who is not a simplified taxpayer for transportation business received a refund of value-added tax under paragraph (1), the competent head of a tax office shall collect the refunded value-added tax and the amount equivalent to interest calculated in accordance with the Presidential Decree, as value-added tax. 1. When the automobile for which the value-added tax was refunded under paragraph (1) is not used for its original purpose or is transferred to a person other than a simplified taxpayer for transportation business. Provided, That this shall not apply to cases where the automobile, which has exceeded the service life under Article 84 of the 「Passenger Automobile Transport Business Act」, is transferred, and other cases prescribed by Presidential Decree. 2. When value-added tax is refunded 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 business place other than the business place where the goods were supplied. c. A tax invoice issued after the due date for final declaration for the tax period to which the supply date of goods belongs. d. A tax invoice that has been arbitrarily modified by the simplified taxpayer for transportation business, from a properly issued tax invoice. e. Other tax invoices that are contrary to the facts and prescribed by Presidential Decree.

If a simplified taxpayer for transportation business changes to a general taxpayer as defined in Article 2 (5) of the 「Value-Added Tax Act」, Articles 38 and 44 of the 「Value-Added Tax Act」 shall not apply to automobiles for which a refund was received under paragraph (1).