ECJ: Tablets or Smartphones in Exchange for Subscription are VAT-Free

• The Court of Justice of the European Union (TSUE) ruled that gifts given in exchange for a subscription should not be separately taxed with VAT.
• The case involved smartphones or tablets given as gifts to customers who purchased a subscription.
• The Portuguese tax authority considered the gifts to be subject to VAT, but the court ruled that they should be exempt.
• The court stated that the gifts were part of a commercial package aimed at increasing the number of subscribers and the profits of the company.
• The court also noted that the value of the gifts was below the threshold for “low-value gifts” and therefore should not be subject to VAT.
• The ruling clarifies that gifts given in exchange for a subscription are considered auxiliary services and should not be taxed separately.

Source: ksiegowosc.infor.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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