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- C-317/94 (Elida Gibbs Ltd.) Money back and discount coupons – Taxable amount to be adjusted
- The ECJ ruled that the taxable amount must be adjusted when money-back guarantees and discount coupons are issued. This decision reinforces the principle that promotional incentives can affect the final VAT liability.
- This ECJ kept on following me during my career in VAT/Tax. This case is the reason why I love ECJ Cases.
- C-533/22 (Adient) – No Fixed establishment solely on the basis that the two companies belong to the same group
- The Court concluded that a fixed establishment cannot be solely established by the fact that two companies belong to the same corporate group. The ruling emphasizes that operational factors must be considered to determine the existence of a fixed establishment for VAT purposes.
- I see the concept of ”Fixed Establishment” as the main risk for multinational companies. The ECJ/CJEU has tried to fill the gaps left by the legislators, who seem not be able to define the concept. It became the favourite toy of tax auditors upon audits.
- C-232/22 (Cabot Plastics Belgium) – Toll manufacturing with ancillary services does not lead to Fixed Establishment
- The judgment clarified that toll manufacturing, along with ancillary services, does not automatically lead to the establishment of a fixed establishment. This reinforces the need for a substantial presence to qualify for fixed establishment status.
- C-132/16 (Iberdrola Inmobiliaria Real Estate Investments) – Conditions for the Right to deduct VAT (!!!) – Renovation free of charge for the benefit of a third party
- The Court established the conditions under which the right to deduct VAT applies, particularly in scenarios where renovations are provided free of charge for the benefit of a third party. This ruling emphasizes the importance of recipient benefit in VAT deductions.
- VAT neutrality and the Right to deduct VAT is the cornerstone of a good working VAT system … VAT for Dummies
- C-717/19 (Boehringer Ingelheim) – Reduction of the taxable amount even if not established on a commercial policy
- The Court ruled that a taxable amount can be reduced even if the reduction does not stem from a commercial policy. This underscores that VAT adjustments can occur based on actual transaction values rather than solely on established pricing strategies.
- One of the principles of VAT is that VAT should only be levied on the amount actually received from their customers/consumers/ …. Also the fact that discounts/rebates can be given to parties indirectly part in the supply chain is very helpful. But how to document?
- C-505/22 (Deco Proteste – Editores, Lda) – A gift for a subscription is not a free transfer of goods and is ”incidental service” to the main supply
- The Court found that a gift provided with a subscription is not considered a free transfer of goods but rather an “incidental service” linked to the main supply. This distinction affects the VAT treatment of promotional offers.
- If costs are made for business purposes, VAT should be deductible … looks so obvious to me.
- C-235/18 (Vega International) – Financing in advance purchase of fuel is an exempted financial service
- The ECJ ruled that financing for the advance purchase of fuel qualifies as an exempt financial service. This decision highlights the VAT exemption criteria for specific financial arrangements related to goods.
- Shows the complexity of VAT not being able to deal with complex business cases
- C-16/93 (R. J. Tolsma) – A service is only provided “for consideration” if there is a legal relationship between the provider and the recipient of the service
- The Court clarified that a fixed establishment does not constitute a separate legal entity distinct from the business itself. This means that the existence of a fixed establishment is tied directly to the business operations rather than being recognized as an independent entity for VAT purposes.
- The concept ”direct and immediate link” …. important in many business cases …
- C-210/04 (FCE Bank) – A fixed establishment is not a legal entity distinct from the business itself
- The Court clarified that a fixed establishment does not constitute a separate legal entity distinct from the business itself. This means that the existence of a fixed establishment is tied directly to the business operations rather than being recognized as an independent entity for VAT purposes.
- Why? No idea ….
- C‑568/17 (Geelen) – Live interactive erotic webcam sessions – Place where a service is actually performed
- The ECJ determined that the place where a service is actually performed is essential for VAT purposes, particularly for live interactive services such as erotic webcam sessions. The ruling emphasizes the need to identify the location of the service provision for proper taxation.
- Most probablhe most visited ECJ/CJEU VAT Case on www.VATupdate.com … Tell me why?
