Europa Tax provisions – Harmonization of laws – Turnover taxes – Common system of value added tax – Exemptions provided for by the Sixth Directive – Exemptions in respect of transactions relating to the granting of credit – Grant, by the supplier of goods or services, of deferral of payment of the price in return for the payment of interest – Exemption – Grant of deferral until delivery – Taking account of the interest as part of the consideration – Taxation. (Council Directive 77/388, Arts 11(A)(1)(a) and 13(B)(d)(1))
Conditions in a contract which required a credit transaction to be ‘clearly dissociable’ from an associated supply of goods would be justifiable to ‘prevent evasion, avoidance or abuse’: ‘This may be of particular importance in the case of transactions between connected parties who might seek artificially to convert the consideration for a taxable supply of goods or services into consideration for an exempt grant of credit by inflating the interest rate . . ‘
Citations:
C-281/91, [1993] EUECJ C-281/91
Links:
Cited by:
Cited – C R Smith Glaziers (Dunfermline) Limited v Commissioners of Customs and Excise HL 20-Feb-2003
The taxpayer sold double glazing, supported by an insured guarantee, for which a charge was made. The additional charge was exempt, but it was contended that the contract should have stated the amount pursuant to Note 5.
Held: The contract . .
Lists of cited by and citing cases may be incomplete.
European, VAT
Updated: 01 June 2022; Ref: scu.160807