Keywords
Summary

Keywords

Tax provisions - Harmonisation of laws - Turnover taxes - Common system of value added tax - Basis of assessment - Supply of goods and services - Subsidies directly linked to the price of those operations - Meaning

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

Summary

$$For the purposes of Article 11A(1)(a) of the Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes, subsidies directly linked to the price must be interpreted as covering only subsidies which constitute the whole or part of the consideration for a supply of goods or services and which are paid by a third party to the seller or supplier. It is for the national court to determine, on the basis of the facts before it, whether or not the subsidy constitutes such consideration.

( see para 18 and operative part )