Inputtax amount deduction for the supplied workout clothes for own employees.

                      21^st Dec 2016

                                            written by Jae Sun, Kim  CTA

                                               translated by Eun Kyung, Park

1. Outline.

Value added tax on supplied workout clothes toemployees in the company athletic meet.

2. Fact

- A company purchased workout clothes for itsown employees for the company athletic meet.

 (1) Acompany received tax invoice for it.

    Can Acompany get input tax amount deduction ?

 (2) Ifit possible to get input tax amount deduction, should A company pay the amountof sales tax?

3. Result

 (1) Toget the input tax amount deduction, the purchased product should be for thebusiness. Purchasing workout clothes for its own employees for the companyathletic meet can be for the business. Therefore it can be get input tax amountdeduction.

 (2) Itis for employees welfare and output tax is not charged.

4. Related law

 Valueadded tax 6, 16, 10-0-3, income tax decree 12.