Yorkshire Co-operatives Ltd v Commissioners of Customs and Excise: ECJ 16 Jan 2003

The retailer accepted coupons issued through newspapers against part of the purchase price of goods. The discount was recovered from the manufacturers on surrender of the coupons. They paid VAT on the discounted value, relying upon Gibbs. The commissioners sought VAT on the amount before the discount.
Held: The claimant had misinterpreted the Gibbs case. The manufacturer was in this case a third party to the transaction between the customer and shop. That part of the purchase price was payable later by a third party did not affect the VAT situation on that purchase, and VAT was payable by the retailer on the full amount. Where a retailer allowed the consumer to settle the sale price partly in cash and partly by means of a reduction coupon issued by the manufacturer of a product, which then reimbursed to the retailer the amount indicated on the coupon, the nominal value of the coupon so reimbursed fell to be included in the amount subject to VAT on the retail sale to the consumer


Schingten President, Gulmann, Skouris, Macken and Colneric JJ


Times 23-Jan-2003, Case C-398/99, [2003] STC 234


Sixth Council Directive 77/388/EC 11(A)91)



Cited by:

CitedRevenue 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 . .
Lists of cited by and citing cases may be incomplete.


Updated: 15 August 2022; Ref: scu.178771