- The ECJ ruled that digital platforms can be considered the actual provider of electronic services and thus liable for VAT, even if the original supplier is mentioned in the purchase confirmation.
- In the Xyrality GmbH case, a German company sold mobile game apps via an Irish platform, and the court found the platform to be the VAT debtor.
- The decision hinges on whether the platform acts in its own name for the end customer, making it the service provider for VAT purposes.
- Businesses must carefully assess if a platform acts as an opaque or transparent intermediary, as this affects VAT application and reporting.
Source: easytax.co
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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