Increase in VAT Liability for Sale of Skins in Online Games

• The case involves whether the plaintiff was a taxable person for activities involving the buying and selling of skins in online games.
• The plaintiff had made numerous sales of skins and earned income of 7,760,529 kr during the period.
• The plaintiff marketed themselves through advertisements on Twitter.com and Reddit.com and had various aliases in the game.
• The Landsskatteretten found that the plaintiff’s sales of skins constituted independent economic activity according to the VAT Act.
• The fact that the plaintiff had acquired a large portion of the skins in the game did not change this conclusion.
• The Landsskatteretten upheld the Skattestyrelsen’s assessment of the plaintiff’s VAT liability.
• For the period from January 2016 to June 2018, the Landsskatteretten also found that the Skattestyrelsen’s assessment was justified under the tax administration law.
• References include various sections of the VAT Act and the tax administration law.

Source: info.skat.dk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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