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ECJ Confirms Deemed Reseller Rule for App Store In-App Purchases

  • ECJ confirms that app stores must be treated as resellers for VAT purposes when facilitating in-app purchases, even when acting on behalf of app developers
  • The ruling applies to situations where customers make paid purchases within free mobile games through pop-up windows displaying the app store logo and payment system
  • App stores are considered to act in their own name during the purchase process, despite later order confirmations showing the app developer as the service provider
  • The decision relates to VAT rules before January 2015 changes, though ECJ notes newer regulations should inform interpretation of existing directives
  • Place of supply for deemed services between app developers and app stores follows standard business-to-business VAT location rules

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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