LON (98/287)

No. 16,097

Decision given 26 May 1999.

Taxable amount – Cars sold in part-exchange – Agreed part-exchange sale value allowed by appellant – Lesser amount repaid in event of cancellation – Whether agreed price or lower price correct value for VAT – Directive 77/388, the sixth VAT directive, art. 11(A)(1)(a).

  The issue was whether the taxable amount in respect of cars taken in part-exchange by a dealer was the price agreed between the parties or a lower price based on the actual trade value, where the original sale was cancelled after the part-exchange car had been sold.

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