Keywords
Summary

Keywords

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Tax provisions ° Harmonization of laws ° Turnover taxes ° Common system of value added tax ° Exemptions provided for by the Sixth Directive ° Exemptions in respect of transactions relating to the granting of credit ° Grant, by the supplier of goods or services, of deferral of payment of the price in return for the payment of interest ° Exemption ° Grant of deferral until delivery ° Taking account of the interest as part of the consideration ° Taxation

(Council Directive 77/388, Arts 11(A)(1)(a) and 13(B)(d)(1))

Summary

Article 13(B)(d)(1) of the Sixth Directive (77/388) on the harmonization of the laws of the Member States relating to turnover taxes must be interpreted as meaning that a supplier of goods or services who authorizes his customer to defer payment of the price, in return for payment of interest, is in principle making an exempt grant of credit within the meaning of that provision. However, where a supplier of goods or services grants his customer deferral of payment of the price, in return for payment of interest, only until delivery, that interest does not constitute consideration for the grant of credit but part of the consideration obtained for the supply of goods or services within the meaning of Article 11(A)(1)(a) of the Sixth Directive.