ECJ Ruling on German VAT Rules for Vouchers: Implications for Prepaid Cards Marketing

• European Court of Justice issued a preliminary ruling on German VAT rules for vouchers
• Case concerned classification and liability for VAT in marketing of prepaid cards or voucher codes
• German tax authorities subjected taxpayer to provisional VAT installment
• ECJ ruled that classification of single-purpose voucher depends on knowing place of supply of services to end consumers
• Resale of multi-purpose vouchers may be subject to VAT if classified as supply of services to taxpayer who delivers goods or services directly to end consumer

Source: news.bloombergtax.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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