Catalonian legislation regulating bingo stipulated that 69% of the face value of all cards sold must be returned to players as winnings. In International Bingo Technology SA v Tribunal Económico-Administrativo Regional de Cataluña (Case C-377/11) the CJEU held that this amount did not form part of the operator’s turnover within Article 11A1 of the Sixth Directive.
Why it matters: The CJEU held that sums which the supplier was required by law to return to its customers as winnings did not form part of the ‘taxable amount’.