Opinion of the Advocate General — ECLI:EU:C:1998:342
Date: 1998-07-09
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 J u d g m e n t 
1. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value 
added tax — Basis of assessment — Rebates and price discounts — Meaning — 100% discount 
— Not covered 
(Council Directive 77/388, Art. 11A(3)(b)) 
2. Tax provisions — Harmonisation of laws — Turnover taxes — Common system of value 
added tax — Taxable transactions — Handing over of goods, offered as gifts, in exchange for 
vouchers obtained on purchasing a product — Whether taxable — Requirement 
(Council Directive 77/388, Art. 5(6)) 
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SUMMARY — CASE C-48/97 
1. On a proper construction of Article 
11A(3)(b) of the Sixth Directive 77/388, 
regarding the factors which do not go to 
make up the taxable amount for VAT pur­
poses, the terms 'rebates' and 'price dis­
counts' cannot be applied to reductions 
covering the whole cost of supplying 
redemption goods. 
2. Article 5(6) of the Sixth Directive 77/388 
treats as a supply made for consideration 
a taxable person's disposal free of charge 
of goods forming part of his business 
assets, where input VAT was deductible 
on those goods. The application by an oil 
company of goods which are disposed of 
to a purchaser of fuel in exchange for 
vouchers which he has obtained in varying 
quantities, depending on the volume of 
fuel purchased, on payment of the full 
retail price for fuel from the pump — 
under a sales promotion scheme in the 
context of which the goods are classed as 
gifts and no portion of the price paid by 
the purchaser represents the value of the 
vouchers or of the goods for which they 
are redeemed — constitutes a disposal free 
of charge and must, where the goods are 
not of small value, be treated as a supply 
for consideration on which VAT is 
payable. 
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