Company Y issued vouchers with country codes, which could only be used by customers residing in the specified country. The German company M sold these vouchers to customers, considering them as multipurpose vouchers (MPVs), and therefore not taxable. However, there were complications in determining the place of supply for taxation. The court reasoned that the vouchers were within the directive’s definition, and it needed to be determined whether they were single-purpose or multi-purpose vouchers. For a voucher to be considered single-purpose, the place of supply and VAT due should be known at the time of issuance. If these factors cannot be determined at that time, it cannot be recognized as a single-purpose voucher.
Source Pawel Mikula
See also
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