1.4 Research framework and referencing system

In order to be able to answer the above questions, a referencing system or research framework is required. I will use positive law as a first reference system: I will use both the EU VAT rules and regulations, including the EU VAT rules regarding the VAT treatment of transactions that involve the use of vouchers as applicable from 1 January 2019, as well as CJEU case law on the relevant topics. It is possible that positive law, or rather the application thereof to promotional activities, is not in line with what I consider to be ‘desirable law’ or ‘appropriate law’. By appropriate law I mean a principled approach that is in line with the principles of justice and fairness.1 Appropriate law should, therefore, be based on and founded on the (relevant) fundamental principles underlying the EU VAT system as well as the basic features of the EU VAT system. I will also use ‘economic reality’ or ‘commercial reality’ as a reflection of justice and fairness, using it as a reference for testing whether positive law is in line with appropriate law. Therefore, I will have to clearly outline this framework and referencing system. Where I find that the application of positive law for determining the VAT treatment of promotional activities is not in line with appropriate law, I will provide guidance for formulating appropriate law and, where possible, actually provide suggestions for appropriate law.