VAT treatment of a card deposit collected when electronic payment cards are provided

The card deposit levied as part of a cashless payment system for the provision of electronic payment cards in stadiums is not a lump-sum compensation (conditional on the return of the card) but a taxable other service which, according to § 4 No. 8 Letter d UStG as Turnover in payment and transfer transactions is tax-free if the entrepreneur making the transfer himself carries out the transfer of funds.

Sources:

• bundesfinanzhof.de
• datev-magazin.de

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