- ECJ judgment in M-GbR (C-68/23) distinguishes between single-purpose vouchers (SPVs) and multi-purpose vouchers (MPVs) for VAT purposes
- Case involved German reseller of country-locked X-cards issued by UK company for digital content
- German reseller argued X-cards were MPVs due to resale chain and potential illegitimate use outside Germany
- German tax authorities argued X-cards were SPVs and VAT was due on resale
- CJEU ruled X-cards met conditions for SPVs, but referred back to determine VAT rate for services
- CJEU mentioned resale of X-cards may still be subject to VAT as independent service
- Businesses need to understand VAT consequences of voucher structures, especially in cross-border scenarios
- Incorrect VAT treatment could lead to disputes with tax authorities.
Source: assets.kpmg.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.
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