- The ECJ ruled in the Deco Proteste – Editores case on the VAT treatment of subscription gifts for new magazine subscribers.
- The court determined that the gift is ancillary to the magazine subscription, and therefore, the reduced VAT rate applies.
- The ruling may provide new arguments and support businesses seeking to qualify gifts as ancillary to a main supply.
- However, the ECJ’s limited guidance to taxpayers and attention to the economic purpose of the seller raise questions about broader legal conditions for qualifying as an ancillary supply.
Source Deloitte
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
- Summary of the ECJ Case C-505/22: A subscription gift in exchange for a periodical subscription is considered an ancillary 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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