Bundled Supply & VAT Rate

(C-463/16, 18/01/2018)

A single supply consisted of two distinct elements which would be subject to different rates must be taxed solely at the rate applicable to that single supply, even if the price of each element forming the full price can be identified.

The Court emphasizes the consequence of a bundled or single supply on the VAT rate. One may not artificially break down the price of a single supply in order to make a reduced rate applicable, where the principle element is standard-rated. Consistently the reduced rate may apply to the total price where the principal element is reduced-rated.

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Ionut Zeche

  • Managing Partner
  • Bucharest

Ionut is the Managing Partner and the founder of Tax Representation. He is a Fulbright scholar, holding a B.A. Finance, a JD and a MS in International Tax at Bentley University. Ionut has 20 years of experience in Romanian and international tax with a focus on foreign investments into Romania, tax controversy and litigation, M&A and international tax structuring.