If you are not paying, you are the product - Personal data and the concept of consideration under EU VAT

Sammanfattning

This thesis examines whether, and under what conditions a user’s personal data or permission to collect and use such data can constitute consideration for a supply of services under EU VAT law. This issue arises in the context of data-driven digital platform business models, where the user is often granted access to digital services without monetary payment, while the platform collects, processes and monetises personal data through for instance advertising and service improvement. The thesis applies a legal dogmatic method and focuses on the interpretation of the VAT Directive, CJEU case law, VAT Committee materials and relevant legal literature. Particular attention is given to Article 2(1)(c) of the VAT Directive, and the requirement that a supply of services must be made “for consideration”. Since the consideration does not need to be monetary, the analysis examines whether personal data, permission to use personal data, or tolerance of data processing may constitute non-monetary consideration. The central criterion is the existence of a direct link between the service supplied by the platform and the user´s counter-performance. The thesis concludes that personal data and the permission to use personal data may, in certain circumstances, constitute consideration.