Comments on ECJ C-505/22: Deco Proteste – Decrypting the ECJ VAT Judgment on Free Gifts

The recent judgment Deco Proteste
Editores (C‑505/22) by the CJEU is difficult to understand and lacks clarity.
The case referred to the CJEU involved a taxpayer selling subscriptions for a magazine and providing a free gift (smartphone or tablet) to incentivize new subscribers.
The CJEU determined that the free gift was ancillary to the supply of the magazine, so VAT only had to be accounted for on the subscription fee.
The CJEU’s reasoning in the judgment requires further analysis and dissection.
The judgment raises the issue of single versus multiple supplies and the tax treatment of ancillary supplies.
The CJEU’s analysis of this issue at the start of the judgment is puzzling as its relationship to the main question is not clear.

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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.