- Deco Proteste – Editores is a publisher of magazines and other consumer protection information material, only available through subscription.
- As part of promotional campaigns, it offers customers who subscribe a tablet or smartphone worth less than 50 euros as a welcome gift.
- The gift is sent by post with the first monthly payment of the subscription, which is equal to the subsequent monthly payments, and there is no loyalty period, so subscribers can keep the gift even if they cancel.
- The invoices show the subscription amount with a reduced VAT rate of 6%, but do not mention the welcome gifts.
- The European Court of Justice ruled that the provision of a welcome gift as a reward for subscribing to a magazine is a secondary service to the main service of delivering magazines, which falls under the concept of “supply of goods for consideration” and should not be considered a supply of goods for free under Article 16(1)(a) of the VAT Directive.
Source BTW jurisprudentie
See also
- ECJ 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
- Roadtrip through ECJ Cases – Focus on ”Free Products” (Art. 16)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
