Case C-300/12 Ibero Tours GMBH, European Court of Justice

26 Feb 2014 | by Raymond Hill

In Ibero Tours, the Court of Justice was asked by the German Federal Finance Court to give guidance on the VAT treatment of discounts. The discounts were given by an intermediary on supplies of services by its principal to end customers. The Court of Justice was in particular asked to consider whether its previous decision in Case C-317/94 Elida Gibbs [1996] ECR I-5339 applied, so that the discounts given by the intermediary to the end customer served to reduce the consideration for the intermediary’s agency services supplied to its principal.