Conversion of Supplies under EU VAT Law

Eight years after it introduced its remarkable approach of “conversion of supplies”, the Court of Justice of the European Union (ECJ) changed course again. However, the former approach of deviating from reality has already taken root and will form part of the European Commission’s proposal on the VAT treatment of vouchers. The approach even plays a role in one of the cases currently pending before the ECJ. In this article, the author discusses the state of affairs.