7.2.3 Summary: which reasons for bartering are relevant for this research, and why?

As this research is based on the EU VAT system, bartering as a result of differences in valuating money or the absence of money can be ignored as these do not (or hardly) occur in the EU. In this research I will also assume that the bartering parties trade on the basis of equality, not inequality.

The ‘emotional’ component of a barter transaction can be relevant for this research, because, as mentioned, under the EU VAT rules, Member States are allowed to levy VAT on the open market value of a transaction if the consideration agreed between parties is affected by a relationship between these parties. A reason for related parties to agree a consideration even though they are aware of the fact that it is not (even close to) the market value of the supply could in some cases be the emotional benefit.

Bartering for economic benefit is the most common and relevant type of bartering as (part of) a promotional activity. Therefore, bartering for benefit, whether economical, emotional or both, is what I will focus on in the rest of this Chapter.