- Dispute & Setup: A bicycle retailer bundled in-store bike sales with maintenance service cards taxed at the reduced VAT rate while applying an offsetting discount directly to the bicycle (normally taxed at the standard 21% rate), prompting the tax authority to assess 21% VAT across the entire invoice amount.
- Independent Supplies Confirmed: Applying CJEU case law, the Court of Appeal of ‘s-Hertogenbosch ruled that the bicycle sale and the maintenance package are two separate, independent supplies rather than a single indivisible transaction or an ancillary service, noting that the business also sells bicycles and maintenance services independently.
- Discount Allocation Upheld: The Court rejected the tax authority’s alternative claim to proportionally distribute the invoice discount between the bicycle and the maintenance card, ruling there was no legal ground to deviate from the specific price allocation agreed upon between the shop and the customer.
Source BTW Jurisprudentie
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