On August 1, 2025, the ECJ issued its judgment in the case C-375/24 (Keesing Deutschland).
Context: Reference for a preliminary ruling – Taxation – Common system of value added tax (VAT) – Directive 2006/112/EC – Article 98 – Option for the Member States to apply a reduced rate of VAT to certain supplies of goods and services – National legislation using the Combined Nomenclature to establish the coverage of the category of goods subject to a reduced rate – Regulation (EEC) No 2658/87 – Combined Nomenclature – Tariff headings – Heading 4902 – Scope – Concept of ‘periodicals’ – Books containing number sudoku games and published periodically – Absence of text composed mainly of alphabetic characters
Summary
- Background: Keesing Deutschland GmbH sought clarification from the CJEU regarding the VAT classification of its sudoku game books, which were initially classified under heading 4911 by the German tax authorities, who argued that the books lacked sufficient textual content.
- Key Questions: The referring court asked whether tariff heading 4902 required printed matter to predominantly consist of letters, and if not, whether the principles of equal treatment and neutrality necessitated applying the reduced VAT rate to these books.
- Court Decision: The CJEU ruled that tariff heading 4902 includes printed materials like sudoku books, regardless of whether they predominantly contain letters or numbers, affirming that the definition of “printed matter” is broader than just alphabetic text.
- Justification: The court emphasized that the interpretation of heading 4902 should consider the objectives of the VAT Directive and the need for uniformity across EU law. The decision highlighted that printed materials do not need to contain text to be classified under this heading, aligning with the explanatory notes of the Harmonized System.
- Outcome: The court concluded that the sudoku books in question fall under heading 4902, enabling them to benefit from the reduced VAT rate. The second question regarding equal treatment was deemed unnecessary to answer due to this ruling.
Article in EU VAT Directive 2006/112/EC
Article 98
1. Member States may apply a maximum of two reduced rates.
The reduced rates shall be fixed as a percentage of the taxable amount, which shall not be less than 5 % and shall apply only to the supplies of goods and services listed in Annex III.
Member States may apply the reduced rates to supplies of goods or services covered in a maximum of 24 points in Annex III.
2. Member States may, in addition to the two reduced rates referred to in paragraph 1 of this Article, apply a reduced rate lower than the minimum of 5 % and an exemption with deductibility of the VAT paid at the preceding stage to supplies of goods or services covered in a maximum of seven points in Annex III.
The reduced rate lower than the minimum of 5 % and the exemption with deductibility of the VAT paid at the preceding stage may only be applied to supplies of goods or services covered in the following points of Annex III:
(a) points (1) to (6) and (10c);
(b) any other point of Annex III falling under the options provided for in Article 105a(1).
For the purposes of point (b) of the second subparagraph of this paragraph, the transactions regarding housing referred to in Article 105a(1), second subparagraph, shall be regarded as falling under Annex III, point (10).
Member States applying, on 1 January 2021, reduced rates lower than the minimum of 5 % or granting exemptions with deductibility of the VAT paid at the preceding stage to supplies of goods or services covered in more than seven points in Annex III, shall limit the application of those reduced rates or the granting of those exemptions to comply with the first subparagraph of this paragraph by 1 January 2032 or by the adoption of the definitive arrangements referred to in Article 402, whichever is the earlier. Member States shall be free to determine to which supplies of goods or services they will continue to apply those reduced rates or grant those exemptions.
3. The reduced rates and the exemptions referred to in paragraphs 1 and 2 of this Article shall not apply to electronically supplied services, except to those listed in Annex III, points (6), (7), (8) and (13).
4. When applying the reduced rates and exemptions provided for in this Directive, Member States may use the Combined Nomenclature or the statistical classification of products by activity, or both, to establish the precise coverage of the category concerned.
Facts & Background
- Context of the Case: The case arises from a dispute between Keesing Deutschland GmbH and the German tax authorities regarding the classification of its sudoku game books for VAT purposes. The company marketed these books as “Sudoku-Varianten Spezial,” which are printed and published every eight weeks.
- Initial Classification: Keesing Deutschland applied a reduced VAT rate of 7% to the sales of its sudoku books, arguing that they should be classified under tariff heading 4902 of the Combined Nomenclature (CN), which covers periodical printed writings.
- Tax Authority’s Rejection: The German tax authorities refused this classification, contending that the sudoku books should be classified under heading 4911 because they lacked “qualifying text” and did not meet the criteria for being categorized as “printed writings” in the German language version of heading 4902.
- Request for Preliminary Ruling: In response to the tax authority’s decision, Keesing Deutschland brought the matter before the Finanzgericht Berlin-Brandenburg (Finance Court, Berlin-Brandenburg), which sought clarification from the Court of Justice of the European Union (CJEU) regarding the interpretation of tariff heading 4902 and the requirements for printed matter.
- Legal Framework: The case pertains to the interpretation of Article 98 of the VAT Directive 2006/112/EC, which allows Member States to apply reduced VAT rates to certain goods and services. The CN, established under Regulation (EEC) No 2658/87, is used to determine the precise coverage of these categories, including heading 4902, which covers newspapers, journals, and periodicals.
- Nature of the Goods: The sudoku books consist of approximately 100 pages, including sudoku puzzles and solutions, and are considered periodical publications due to their regular publication schedule. The German tax authorities’ classification hinged on whether the books contained sufficient textual content as defined by the national interpretation of the CN.
Questions
Do the principles of equal treatment and neutrality require that the reduced rate [of VAT] also be applied to the supply of puzzle books containing number sudokus which, although they are not to be classified under CN heading 4902, serve or satisfy an identical purpose, from the point of view of the average consumer, as letter sudokus and crossword puzzles, which clearly come under CN heading 4902, and symbol sudokus and musical sudokus, which are clearly to be classified under CN heading 4904 and are therefore also subject to the reduced rate?
AG Opinion
None
Decision
- Tariff heading 4902 of the Combined Nomenclature set out in Annex I to Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff, in the version resulting from Commission Implementing Regulation (EU) 2018/1602 of 11 October 2018,
- must be interpreted as meaning that goods described as books bound in paper which contain mainly printed sudoku games, in which certain numbers in the series 1 to 9 are already entered in a grid, the other numbers having to be entered in the grid in a precise order, and which are published every eight weeks, come under that heading.
Source
Reference to other ECJ cases
- C-703/19 (Dyrektor Izby Administracji Skarbowej w Katowicach): This case emphasized the discretion of Member States in defining categories for reduced VAT rates while ensuring compliance with the VAT Directive and fiscal neutrality.
- C-260/00 to C-263/00 (Lohmann and Medi Bayreuth): Clarified that the CJEU provides guidance on classification criteria rather than making classifications itself, reinforcing the role of national courts in determining the correct classification of goods.
- C-62/20 (Vogel Import Export): Highlighted that while the CN must conform to the Harmonized System (HS), Member States retain some flexibility in defining the scope of reduced VAT rates.
- C-252/24 (Prisum Healthcare): Reiterated the importance of explanatory notes as tools for uniform application and interpretation of the Common Customs Tariff, although not legally binding.
- C-227/22 (Regionalna direktsia ‘Avtomobilna administratsia’ Pleven): Emphasized the necessity for uniform interpretation across different language versions of EU law, relevant to discrepancies between the German, French, and English versions of heading 4902.
- C-330/24 (Celní jednatelství Zelinka): Reinforced the principle that classification of goods must be based on their objective characteristics and properties as defined in CN headings, emphasizing the importance of clarity and uniformity in tariff classifications.
- C-656/19 (BAKATI PLUS): Addressed issues of fiscal neutrality and clarified the conditions under which reduced VAT rates may apply, relevant to the interpretation of VAT classifications in the context of specific goods.
- C-653/18 (Unitel): Discussed the principles of fiscal neutrality in VAT law, establishing that VAT exemptions must be granted when substantive conditions are met, regardless of formal requirements.
Similar ECJ Cases
Newsletters
European Court of Justice Ruling on Reduced VAT Rate for Sudoku Puzzle Magazines
- The case involved the applicability of the reduced tax rate under German VAT law for Sudoku puzzle magazines.
- The issue was whether the reduced tax rate applied to these magazines based on the Combined Nomenclature.
- EU member states can use the Combined Nomenclature to determine items eligible for reduced tax rates.
- Germany uses this system in its VAT law to specify items eligible for tax reduction.
- Category 6 of Annex III of the VAT Directive allows reduced tax rates for books, newspapers, and periodicals, excluding those mainly for advertising or containing video or music.
- German VAT law specifies a 7 percent reduced rate for certain printed products, excluding those with youth protection restrictions or mainly for advertising.
- The Sudoku magazines in question were considered under the category for newspapers and periodicals, potentially qualifying for the reduced rate.
- The plaintiff sold puzzle booklets titled “Sudoku-Varianten Spezial,” which were printed booklets containing Sudoku puzzles.
Source: awb-international.com
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