The Amsterdam Court of Appeal ruled that X is liable to pay VAT on the full payments received, not just on the used units, and that it is not a multipurpose service. X, a telecom provider, offers post-paid subscriptions with a fixed amount for a limited number of call minutes, text messages, and MBs. Customers can donate unused MBs to non-profit organizations and compete for prizes. The court ruled that X must pay VAT on the full subscription price, regardless of the units used, as the service is provided from the beginning to the end of the subscription period.
Source Taxlive
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