Jarosław Witkowski
Judgment of the Court of Justice of the European Union of 29 July 2010, C-40/09 - the gloss
Summary
The gloss provides critical comment to the verdict of the Court of Justice from 29th July 2010 C-40/09. This verdict is unique because the Court of Justice has considered the issue of taxation with value added tax the handover of gift tokens by the employer to employees, rather than delivery of goods for employees, in exchange for gift tokens used by them. Finally the Court of Justice has stated that handover of gift tokens by the company, which had purchased them at a price including the value added tax, to its employees in exchange for resignation by them from the part of their salary in cash, is a supply of services against payment. The author does not agree with such line of the Court of Justice since, in his opinion, the Court had ignored the fact that handover of gift tokens to employees as a part of their salary is not a service and thus is not a supply of services against payment within the meaning of value added tax. Moreover the Court of Justice has overlooked the issue connected with the character of gift tokens received by employees. Doubtless they are a part of their rightful salary for the work provided by them. However, the salary of the employee is not liable to value added tax.