- ECJ ruled that German VAT should be charged on sales of gift card vouchers between intermediaries in different countries
- Background of the case involved a German business selling gift cards meant for use in Germany only
- German Tax Authorities disagreed with the business, stating the vouchers were not multipurpose vouchers (MPVs) but single purpose vouchers (SPVs)
- CJEU decision favored the German Tax Authorities, ruling that the vouchers were SPVs and German VAT should be charged on sales
- The decision clarifies EU voucher rules and emphasizes that fraudulent practices should not impact VAT treatment for transactions
Source: essentiaglobalservices.com
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.
