Keywords
Summary

Keywords

++++

Tax provisions ° Harmonization of laws ° Turnover taxes ° Common system of value added tax ° Supply of services ° Determination of place of taxation ° "Advertising services" within the meaning of the Sixth Directive ° Definition ° Promotional activities

(Council Directive 77/388, Art. 9(2)(e))

Summary

The concept of "advertising services" within the meaning of Article 9(2)(e) of the Sixth Directive, relating to the place of taxation for certain supplies of services, is a Community concept which must be interpreted uniformly in order to avoid instances of double taxation or non-taxation which may result from conflicting interpretations.

That concept covers a promotional activity, such as the sale of goods at reduced prices, the handing-out to consumers of movable tangible property sold to the recipient by an advertising agency, the supply of services at reduced prices or free of charge, or the organization of a cocktail party or banquet, if that activity involves conveying a message intended to inform the public of the existence and the qualities of the product or service which is the subject-matter of the activity, with a view to increasing the sales of that product or service. The same applies to any activity which forms an inseparable part of an advertising campaign and which thereby contributes to conveying the advertising message, which is the case with regard to the production of aids used for a particular advertisement.