- The EU Court of Justice has ruled that Deco’s provision of a welcome gift, such as a tablet or smartphone, to customers taking out a magazine subscription is considered an additional service and falls under the concept of “supply of goods for consideration.”
- This means that it is a secondary performance to the main performance of supplying magazines and is subject to VAT.
- The ruling came after an audit by Portuguese tax authorities found that Deco had not included the value of the gifts in their invoices and owed €3.5 million in VAT.
Source Taxlive
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
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