Keywords
Summary

Keywords

Tax provisions - Harmonisation of laws - Turnover taxes - Common system of value added tax - Taxable amount - Sales promotion system in the context of a self-financed credit scheme established by the supplier giving entitlement to a discount on the catalogue price - Taxable amount constituted by the full catalogue price, reduced accordingly by the amount of the discount when used

(Council Directive 77/388, Art. 11A(3)(b) and C(1))

Summary

$$Upon a proper construction of Article 11A(3)(b) and C(1) of the Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes, the taxable amount in respect of goods supplied by mail order from a catalogue to a customer for the customer's own use where the supplier allows the customer a discount from the catalogue price, a separate account being credited in the customer's favour with the amount of that discount as and when instalment payments are paid to the supplier - a discount which may then be immediately withdrawn or used in another way by the customer - is the full catalogue price of the goods sold to the customer, reduced accordingly by the amount of that discount at the time when it is withdrawn or used in another way by the customer.

( see para. 36 and operative part )