Opinion of the Advocate General — ECLI:EU:C:2001:30
Date: 2001-01-18
Language of the case: English
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Value added tax
Procedure: Reference for a preliminary ruling
Origin: United Kingdom

Summary of the Judgment 
Tax provisions — Harmonisation of laws — Turnover taxes — Common system of 
value added tax — Taxable amount — Supply of goods — Possibility for the purchaser 
to acquire goods by means of interest-free credit provided by a finance company distinct 
from the seller — Payment by that company to the seller of an amount less than the price 
of the goods — Taxable amount consisting of the total amount payable by the purchaser 
(Council Directive 77/388, Art. 11.A(1)(a)) 
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SUMMARY — CASE C-34/99 
On a proper construction of Arti­
cle 11.A(1)(a) of Sixth Directive 77/388 
on the harmonisation of the laws of the 
Member States relating to turnover taxes, 
where a supply of goods for consideration 
has the following features: 
— a retail trader sells goods in return for 
payment of the advertised price which 
he invoices to the purchaser and which 
does not vary according to whether the 
customer pays in cash or by way of 
credit; 
— should the purchaser so request, the 
acquisition of the goods is financed by 
the provision to him of interest-free 
credit by a finance company distinct 
from the seller; 
— the finance company gives an under­
taking to the purchaser that it will pay 
to the seller on the purchaser's behalf 
the sales price advertised and invoiced 
by the seller; 
— the finance company in fact pays to the 
seller, pursuant to agreements conclu­
ded with the seller but of which the 
purchaser is unaware, a sum less than 
the price advertised and invoiced; and 
— the purchaser repays to the finance 
company a sum equal to the price 
advertised and invoiced, 
the taxable amount for purposes of calcu­
lating the value added tax payable on that 
sale consists of the full amount payable by 
the purchaser. 
(see para. 49 and operative part) 
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