1.7 Scope of the research

For this research I examine the EU VAT treatment of voucher in the context of promotional activities. Because, as I will demonstrate, the VAT treatment of vouchers greatly depends on the VAT treatment of the underlying transactions, I will start by examining the current EU VAT treatment of promotional activities. Where possible, I compare this treatment under positive law with the treatment under desired law or appropriate law. I will examine different types of promotional activities that, together, provide for a comprehensive overview of all relevant VAT issues surrounding promotional activities. I will, where appropriate, look into whether a supply is made for consideration, the question whether VAT on costs attributable to supplies that are not made for consideration can be deducted and how to determine the taxable amount (the basis for calculating the VAT due) for transactions that are not performed for considerations and for barter transactions. Further, I will examine when and how to adjust the taxable basis where a business provides discounts, rebates or cash backs. I will also investigate whether it is always appropriate to tax supplies that are not made for consideration. Also, I will examine the VAT treatment of promotional lotteries and other games of chance, as well as promotional activities that involve vouchers (in the broadest sense of that concept). I will examine all these promotional activities within the framework of the EU VAT rules, CJEU case law as well as desired or appropriate law, where this deviates from positive law. After that, I will examine the current EU VAT treatment of vouchers, and compare this treatment under positive law with the treatment under desired law or appropriate law.

I will not examine the EU VAT treatment of all possible promotional activities. For example, I will not examine the VAT treatment of advertisement services, the supply of cause-related products,1 point-of-sale promotions,2 end-cap marketing,3 customer appreciation events or after-sale customer surveys. The VAT treatment of these activities can be very interesting, but they will never involve the use of vouchers, and vouchers are the ultimate focus of my research.4 This research focuses on the promotional activities performed by the business whose products or activities are promoted himself. These are the activities that warrant taxation since they may lead to private consumption, and that should also not create a VAT cost because these activities are performed for the purposes of (promoting) the business’ (taxable) activities. That’s why this research focuses on the VAT treatment of vouchers in the context of promotional activities as performed by the business whose own goods or transactions are promoted.