Keywords
Summary

Keywords

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Tax provisions - Harmonization of laws - Turnover tax - Common system of value added tax - Taxable amount - Supply of goods - Consideration may consist in a provision of services - Condition - Provision of services directly linked to the supply and capable of expression in monetary terms - Supply of an article without extra charge to persons introducing themselves or other persons as new customers - Purchase price for the supplier of the article supplied

(Council Directive 77/388, Art. 11A(1)(a))

Summary

The consideration for a supply of goods, and accordingly the taxable amount within the meaning of Article 11A(1)(a) of the Sixth Directive in respect of such supply, may consist in a provision of services if there is a direct link between the supply of goods and the provision of services and if the value of those services can be expressed in monetary terms. That value, which is a subjective value and not a value estimated according to objective criteria, must, where it is not a sum of money agreed between the parties, be the value which the recipient of the services provided as consideration for the supply of goods attributes to the services which he is seeking to obtain and must correspond to the amount which he is prepared to spend for that purpose.

Article 11A(1)(a) must therefore be interpreted as meaning that the taxable amount in respect of articles supplied without extra charge to persons who introduce themselves or other persons as potential new customers as consideration not for the purchase made but for the introduction of a new customer is not the taxable amount in respect of the goods bought from the supplier by the new customer but is the price paid by the supplier for that article.