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Roadtrip through ECJ cases: Focus on Promotional activities/Discounts (Art. 79, 87, 90(1))

The ECJ has decided in few cases on the determination of the Taxable Amount if discounts are granted


Article in EU VAT Directive 

Article 79 (Taxabe amount – Supp;y of goods or services)
The taxable amount shall not include the following factors:
(a) price reductions by way of discount for early payment;
(b) price discounts and rebates granted to the customer and obtained by him at the time of the supply;
(c) amounts received by a taxable person from the customer, as repayment of expenditure incurred in the name and on behalf of the customer, and entered in his books in a suspense account.
The taxable person must furnish proof of the actual amount of the expenditure referred to in point (c) of the first paragraph and may not deduct any VAT which may have been charged.

Article 87 (Taxable amount – Importation of Goods)
The taxable amount shall not include the following factors:
(a) price reductions by way of discount for early payment;
(b) price discounts and rebates granted to the customer and obtained by him at the time of importation.

Article 90 (Taxable amount – Misc. provisions)
1. In the case of cancellation, refusal or total or partial non-payment, or where the price is reduced after the supply takes place, the taxable amount shall be reduced accordingly under conditions which shall be determined by the Member States.


ECJ Cases – Decided

Promotional schemes

Discounts

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