The EU VAT Treatment of Vouchers in the Context of Promotional Activities
Einde inhoudsopgave
The EU VAT Treatment of Vouchers (FM nr. 157) 2019/6.2.3:6.2.3 Free supplies as promotional activities
The EU VAT Treatment of Vouchers (FM nr. 157) 2019/6.2.3
6.2.3 Free supplies as promotional activities
Documentgegevens:
Dr. J.B.O. Bijl, datum 01-05-2019
- Datum
01-05-2019
- Auteur
Dr. J.B.O. Bijl
- JCDI
JCDI:ADS597154:1
- Vakgebied(en)
Omzetbelasting / Levering van goederen en diensten
Omzetbelasting / Bijzondere OB-regelingen
Omzetbelasting / Vergoeding
Toon alle voetnoten
Voetnoten
Voetnoten
Specialty items are gifts for customers/prospects with the business’ name or logo on them (e.g. hats, golf balls or pens), the function or use of which often has nothing to do with the actual products or services sold by the business.
Deze functie is alleen te gebruiken als je bent ingelogd.
Businesses use consumer sales promotions to influence their market share across all outlets and sales channels. Examples of popular forms are: vouchers and coupons (which I discuss in Chapter 9), discounts and rebates (which I discuss in Chapter 5), samples (to be discussed in this Chapter), sweepstakes (discussed in Chapter 8), price and value packs (discussed in Chapter 4) and free goods and services (to be discussed in this Chapter), where specialty items1 represent a species of free goods.
In this Chapter I will discuss the VAT treatment of the supply of specialty items, price and value packs, samples and other types of free and/or composite supplies where elements to the composite supply are made for free, focussing on business gifts (as part of the ‘promotional mix’).
First, I will briefly reiterate why gifts have a special position in VAT, this being the reason that ‘gifts’ deserve a dedicated section in this research. Subsequently, I investigate when and why transactions actually qualify as (the supply of) gifts from a VAT perspective. I will then focus on the actual VAT treatment of gifts and then conclude with my view on what the VAT treatment of gifts should be.