Payments for early termination of a contractual period
In Vodafone Portugal – Comunicações Pessoais SA v Autoridade Tributária e Aduaneira (Case C-43/19) (11 June) the CJEU held that amounts received by an economic operator in the event of early termination for reasons specific to the customer of a services contract requiring compliance with a tie-in period in exchange for granting that customer advantageous commercial conditions must be considered to constitute the remuneration for a supply of services for consideration.
The taxpayer entered into agreements with its customers for the provision of telephone services. One such agreement involved a ‘tie in period’ under which customers committed to maintaining a contractual relationship with the taxpayer for a certain period in return for commercial benefits (e.g. discounts and ‘free’ installation services). The agreement provided that should a customer fail to comply with the tie-in period for reasons of its own ...
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Payments for early termination of a contractual period
In Vodafone Portugal – Comunicações Pessoais SA v Autoridade Tributária e Aduaneira (Case C-43/19) (11 June) the CJEU held that amounts received by an economic operator in the event of early termination for reasons specific to the customer of a services contract requiring compliance with a tie-in period in exchange for granting that customer advantageous commercial conditions must be considered to constitute the remuneration for a supply of services for consideration.
The taxpayer entered into agreements with its customers for the provision of telephone services. One such agreement involved a ‘tie in period’ under which customers committed to maintaining a contractual relationship with the taxpayer for a certain period in return for commercial benefits (e.g. discounts and ‘free’ installation services). The agreement provided that should a customer fail to comply with the tie-in period for reasons of its own ...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
