Commentary

V7.420 Supply—samples

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.420 Supply—samples

Part V7 Tax planning | Commentary

V7.420 Supply—samples

Under HMRC's previous interpretation of the rules for samples, only one sample of each product supplied to another person was disregarded for output tax purposes. However, this approach was deemed to be incorrect following the 2010 case at the European Court involving EMI Case C-581/08, [2010] STC 2609, ECJ.

The case related to the VAT treatment of DVD samples given away by EMI to music retailers and confirmed that according to EU law, there is no limit on the number of samples that can be supplied for VAT purposes as long as they are given away for business purposes.

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