The Court of Justice of the European Union (CJEU) delivered its judgment in the case of Finanzamt X v Y KG C-207/23 on 25 April 2024, which related to the interpretation of Articles 16 and 74 of the VAT Directive in the context of the imposition of VAT by Finanzamt X on supplies made free of charge by Y KG. Article 16 outlines the self-supply rule for goods where goods forming part of the business assets are applied to a private use or disposed of free of charge (but there is an exception where the goods are used as business samples or gifts of small value). Article 73 of the VAT Directive sets out the general rule for the taxable amount, and Article 74 provides that where a taxable person applies or disposes of goods forming part of his business assets the taxable amount is the purchase price of the goods (or of similar goods) or, in the absence of a purchase price, the cost price, which is determined at the time when the application or disposal takes place.