Guri-si Receives 2.6 Billion KRW VAT Refund for Taxable Facilities

Active Refund Implementation Through Internal TF Team Formation in Accounting Department... Contributing to City Financial Expansion

The city of Guri, Gyeonggi Province (Mayor Baek Kyung-hyun) announced on the 28th that it recently received a total refund of 2.6 billion KRW through a revised claim for input value-added tax (VAT) paid on newly constructed taxable facilities.

Guri City Hall exterior. Provided by Guri City

Goods or services provided by local governments are generally exempt from VAT under the Value-Added Tax Act; however, real estate rental businesses, wholesale and retail businesses, restaurants and lodging businesses, golf course and ski resort operations, and other sports facility operations are classified as VAT taxable businesses.

Accordingly, the city initiated a refund process in July this year for input VAT on construction costs incurred during the building of taxable facilities such as sports and rental facilities. Initially, three facilities?Galmae Multi-Sports Center, Galmae-dong Complex Office, and Guri City Women’s Happiness Center?were targeted, ultimately achieving a refund of 2.6 billion KRW.

According to Guri City, this refund was accomplished through the efforts of an internal task force (TF) team composed of city accounting department officials without the use of external tax firms. This achievement was the result of thorough verification processes including detailed document reviews and on-site inspections by tax authorities, and it is expected to significantly contribute to the city’s strained finances.

A Guri City official stated, “Through proactive study of VAT laws by public officials and the formation of the TF team, we were able to swiftly carry out the refund claim process, realizing active administration that increased city finances and reduced service fee budgets. Although VAT is a national tax and somewhat unfamiliar to department staff, the unified efforts made this accomplishment even more meaningful.”

Mayor Baek Kyung-hyun of Guri said, “This VAT refund was a result of excellent collaboration by the TF team, demonstrating that even highly specialized tasks can be successfully handled without external services. The refunded amount of 2.6 billion KRW will be used as an important financial resource for improving citizen welfare and regional development.”

Meanwhile, the city plans to continue its efforts to secure tax revenue by carefully managing the deduction of taxable business expenses during quarterly VAT filings and payments, including additional refund claims for input VAT on facilities such as the Geomba Cultural and Sports Center, thereby uncovering hidden financial resources.