Sales promotion techniques and VAT

Abstract:

Sales promotion is often a key component within a company’s promotional campaign. Sales promotion consists of the use of a number of sales promotion techniques (SPTs). Although the use of SPTs is common practice, the VAT treatment and consequences of the use of SPTs are uncertain, wherefore this often gives rise to a VAT cost.

The article contents how the use of SPTs can be brought (more) in accordance with the principle of neutrality, based on which the VAT should in principle not bear on businesses, but on final consumers only. The article thereby mainly focusses on SPTs whereby a sales promoter himself offers a benefit to a customer as a SPT.

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