- The Spanish Supreme Court held that VAT on free promotional items given to customers is not deductible when they are customer hospitality gifts, not true advertising goods.
- It confirmed that Article 96 of Spain’s VAT Law is compatible with EU law, including the standstill clause in Directive 2006/112/EC.
- The case involved Heineken España and materials like terrace furniture and hospitality promotional items distributed in commercial campaigns.
- The Court agreed with the tax authorities that these were not real discounts in kind or genuine sales, but free deliveries to customers.
- The ruling reinforces that such gratuitous customer-attraction items do not give rise to a right to deduct input VAT.
Source: allyon-etl.es
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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