Classification of single-use vouchers based on issuance, not subsequent transfers in multi-state distribution chain.

• The European Court of Justice ruled that to classify a voucher as “single-use” for VAT purposes, the location of the transaction and the tax due must be known at the time of issuance
• The case involved a German company selling prepaid cards or voucher codes for digital content, issued by a UK company and marketed in the EU through intermediaries in different member states
• The German tax authority classified the cards as single-use because they were intended for customers in Germany, while the German company classified them as multi-use due to uncertainty about the location of services
• The court is considering the classification of vouchers transferred between parties in different EU member states
• According to Directive 2006/112/EC, a voucher is classified as single-use if the location of the transaction and the VAT due are known at the time of issuance.

Source: eutekne.info

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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