Einde inhoudsopgave
The EU VAT Treatment of Vouchers (FM nr. 157) 2019/6.2.4
6.2.4 Gifts and VAT
Dr. J.B.O. Bijl, datum 01-05-2019
- Datum
01-05-2019
- Auteur
Dr. J.B.O. Bijl
- JCDI
JCDI:ADS599449:1
- Vakgebied(en)
Omzetbelasting / Levering van goederen en diensten
Omzetbelasting / Bijzondere OB-regelingen
Omzetbelasting / Vergoeding
Voetnoten
Voetnoten
Artt. 176, 177 and 184-186 of the EU VAT Directive.
This is the main rule, which I will discuss in depth in Section 8.3.3, where I will also describe the exceptions to this rule.
Services that are performed free of charge are only subject to VAT (or rather: treated as if they were performed for consideration) if they are used for the private use of a taxable person or that of his staff, or, more generally, for purposes other than those of his business (Article 26 of the EU VAT Directive). This means that in general, the consumptive use of services is taxed in fewer situations that the consumptive use or application of goods. I will examine this difference in Section 8.3.3.
As mentioned above, taxation of supplies that are not made for consideration can be achieved by either (retroactively) disallowing deduction of VAT on the costs of the goods and services that are not used for taxable business activities,1 or by taxing these activities as ‘deemed supplies’. In the current EU VAT system, the ‘main rule’ requires businesses to apply the latter system (taxing the application of the goods or services by deeming them to be supplied for consideration).
The above means that, as a main rule, the supply of ‘free’ goods or services by businesses is subject to VAT.2,3 The same applies to the element(s) that is (are) supplied for free (the ‘gift elements’) in composite supplies.