Opinion of the Advocate General — ECLI:EU:C:2001:13
Date: 2001-01-11
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 — 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)) 
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SUMMARY — CASE C-86/99 
Upon a proper construction of Arti­
cle 11A(3)(b) and C(1) of the Sixth Direc­
tive 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 sup­
plier ·— a discount which may then be 
immediately withdrawn or used in another 
way by the customer — is the full cata­
logue 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it is withdrawn or used in another way by 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) 
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