Last update: June 17, 2025
Relevant article in the EU VAT Directive 2006/112/EC
Article 16
The application by a taxable person of goods forming part of his business assets for his private use or for that of his staff, or their disposal free of charge or, more generally, their application for purposes other than those of his business, shall be treated as a supply of goods for consideration, where the VAT on those goods or the component parts thereof was wholly or partly deductible.
However, the application of goods for business use as samples or as gifts of small value shall not be treated as a supply of goods for consideration.
ECJ Cases Decided
- C-258/95 (Julius Fillibeck Söhne GmbH & Co. KG) – Transport for employees free of charge from their homes to the workplace is not a supply of services
- C-48/97 (Kuwait Petroleum (GB) Ltd) – The concepts of ‘price discounts’ and ‘price rebates’ cannot include a price reduction that relates to the full cost of a supply of goods
- C-412/03 (Hotel Scandic Gåsabäck) – Provision of meals in company canteen at a lower price than cost
- C-581/08 (EMI Group Ltd) – Definition of a ”Sample”
- C-40/09 (Astra Zeneca) – Retail vouchers provided by an undertaking to its employees is a taxable transaction
- C-438/13 (BCR Leasing IFN) – No deemed supply for VAT when leased cars cannot be repossessed
- C-505/22 (Deco Proteste – Editores, Lda) – Judgment – A gift for a subscription is not a free transfer of goods and is ”incidental service” to the main supply
- C-207/23 ((Finanzamt X)) – Heat generated free of charge constitutes the supply of goods for consideration
ECJ Cases – Pending Cases
None
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