VAT Committee’s Opinion on VAT Treatment of Virtual Asset Sales via Digital Platforms

• Denmark has asked the EU Commission’s VAT Committee for an opinion on the VAT treatment of trade in virtual assets via digital platforms.
• The virtual assets in question are “skins” from online video games, which players can trade with each other through digital platforms.
• The VAT Committee will clarify whether the sale of skins on the secondary market falls within the scope of VAT.
• The Federal Fiscal Court in Germany has ruled in a similar case, stating that the sale of virtual assets on digital platforms should constitute a deemed reseller model.
• The principles of VAT law apply to the sale of virtual goods, and players can sell virtual assets as part of their business.
• The VAT consequences for digital platforms are significant, and they may be entitled to deduct input VAT from the supplies purchased.

Source: kmlz.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.

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