Granton Advertising v Inspecteur van de Belastingdienst

In Granton Advertising v Inspecteur van de Belastingdienst (C-461/12) the CJEU found that the sale of discount cards was subject to VAT.

Granton had issued and sold ‘Granton’ cards to customers. The cards entitled their holder to goods and services on preferential terms from retailers and businesses such as restaurants cinemas hotels and saunas which had concluded an agreement to that effect with Granton Advertising.

The Dutch tax authorities had assessed Granton on the basis that the sale of the cards was subject to VAT. The issue was whether Granton cards were ‘other securities’ for the purpose of the Sixth Directive art 13(B)(5) and were therefore exempt from VAT.

The court observed that a Granton card had no nominal value and that it cannot be exchanged for money or goods from the affiliated businesses. It therefore considered that the sale of a Granton card...