Opinion of the Advocate General — ECLI:EU:C:2010:218
Date: 2010-04-22
Language of the case: English
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 transactions – Supply of services for consideration (Council Directive 77/388, Art. 2(1)) Article 2(1) of Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes, as amended by Directive 95/7, must be interpreted as meaning that the provision of a retail voucher by a company, which acquired that voucher at a price including value added tax, to its employees in exchange for their giving up part of their cash remuneration constitutes a supply of services effected for consideration within the meaning of that provision. In fact, there is a direct link between the provision of those vouchers to the employees and the part of the cash remuneration which the employees must give up as consideration for that provision since, instead of receiving all their remuneration in cash, those who have chosen to receive such vouchers must give up part of that remuneration in exchange for those vouchers, that transaction resulting in a specific deduction from the fund of an employee who made that choice. Moreover, the employer actually receives consideration, expressed in money, for the provision of the retail vouchers, since it corresponds to a fraction of the cash remuneration of its employees. In addition, the burden of the value added tax on the provision of those vouchers is borne by the employees who receive the vouchers, since the deduction from their remuneration to which that provision gives rise includes the price of the vouchers and all the value added tax on them. (see paras 29-32, 35, operative part)