- The European Court of Justice ruled on the interpretation of certain provisions of the VAT Directive regarding the taxation of vouchers in a supply chain
- The VAT treatment of vouchers issued after December 31, 2018 was newly regulated by a law aimed at preventing VAT losses in online trading
- The case involved a company selling prepaid cards for digital content through an online store, with the cards being distributed by a company based in the UK
- The company selling the cards believed they were multi-purpose vouchers, while the tax authorities disagreed due to uncertainty about the customers’ location
- The tax authorities argued that the company did not have sufficient information to determine the place of supply for VAT purposes, as customers from outside Germany were also purchasing cards with a German designation
Source: datenbank.nwb.de
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.
