(The Dutch Potato case) A farmers’ cooperative owned a refrigerated potato store. During 1975 and 1976 it came to be unnecessary, because it was planning to sell the store, to levy the usual storage charges on its members. Dutch tax officials claimed that there was nevertheless consideration for their use of the store in the form of a reduction in the value of their shares in the co-operative.
Held: The tax official’s case failed. Three principles applied. There must be a direct link between the service provided and the consideration received; the consideration must be capable of being expressed in money; and thirdly, ‘that such consideration is a subjective value since the basis of assessment for the provision of services is the consideration actually received and not a value assessed according to objective criteria’.
Judges:
Advocate General Warner
Citations:
[1981] ECR 445, C-154/80, R-154/80, [1981] EUECJ R-154/80
Links:
Jurisdiction:
European
Cited by:
Cited – Lex Services plc v Her Majestys Commissioners of Customs and Excise HL 4-Dec-2003
When taking a car in part exchange, the company would initially offer the correct market value. If the customer wanted, the company would agree a higher price. When cars were returned, the company at first reclaimed the VAT on the re-purchase price, . .
Cited – Revenue and Customs v Debenhams Retail Plc CA 18-Jul-2005
The store introduced a system whereby when a customer paid by credit card, the charges made to them for card handling were expressed as a separate amount on the receipt. The store then said that VAT was payable only on the net amount allocated to . .
Cited – Airtours Holidays Transport Ltd v Revenue and Customs SC 11-May-2016
The court was asked whether the appellant, Airtours Holidays Transport Ltd (formerly MyTravel Group plc), was entitled to recover, by way of input tax VAT charged by PricewaterhouseCoopers LLP in respect of services provided by PwC and paid for by . .
Lists of cited by and citing cases may be incomplete.
European, VAT
Updated: 21 May 2022; Ref: scu.133088