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ECJ Cases related to ”Barter deals”

What is a Barter deal?

  • A barter deal is a situation whereby 2 parties exchange goods and/or services to each other while there is no (full) monetary compensation. The goods/services received by one party are deemed to be the consideration for the goods/services supplied by the other party.
  • The ”consideration” is by definition in kind.

VAT Consequences

  • From a VAT perspective, there are 2 taxable transactions. For each of the 2 transactions, the VAT consequences are to be assessed separately.
  • Specfic watch-out for teh qualification of the transaction (supply of goods vs services), place of supply, VAT rate applicable to each of the transactions, deduction of VAT, liability of VAT, …
  • Invoicing: This also means that both parties needs to issue an invoice for the supply of goods/services to the other party. Hence, 2 invoices are needed even if there is no monetary compensation.
  • Reporting: Both transactions are to be reported in the VAT returns of the companies, either a sale or purchase of goods/services

ECJ Cases 

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