Agents of a mail order company were allowed to claim sums in credit for their own sales, against their own purchases. The credit was in effect applied through a separate account with the company. How was the VAT ‘taxable amount’ to be calculated? Here the deduction was not applied after the purchase, and were not therefore discounts. Many discounts were not in fact applied for. The VAT was to be calculated on the full purchase price less discounts applied at the time when the discount was withdrawn from the account.
Times 18-Jun-2001, Case C-86/99
European
Updated: 01 September 2021; Ref: scu.162745