The court ruled that the golf course cart operation does not fall under the ‘passenger transport business’ that can be used by the general public and cannot be exempted from VAT.
According to the legal community on the 2nd, the 6th administrative division of the Seoul Administrative Court (Judge Lee Ju-young) ruled against the plaintiff in a lawsuit against the refusal to rectify the value added tax paid by 27 companies, including golf course operators and cart operators, against 23 jurisdictions nationwide.
These companies demanded a refund of VAT from the tax office stating that the golf course cart operation is a passenger transportation service and is subject to reduction or exemption under the VAT Act.
The court also ruled that the golf cart operation and rental business did not fall under passenger transportation and was not subject to reduction or exemption.
The court said, “The service in this case was not simply transporting passengers and receiving the fare, but the substance was ‘providing the convenience of movement on the course for the smooth progress of the game for golf course users’, and it was deemed to be included in the golf course operation business as a whole. It is justified,” he judged.
He also explained, “In order to view passenger transportation services that are exempt from VAT, it is not enough to simply handle the movement of passengers.