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

The Court of Justice of the European Union ruled that in order to classify a voucher as “single-use” for VAT purposes, it must be known at the time of issuance the place of performance and the tax due on the underlying transaction.
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, while the German retailer classified them as multi-use due to uncertainty about the place of service.
The referring judge questioned the classification of vouchers when transferred between entities in different member states.
According to Directive 2006/112/EC, a voucher is classified as single-use if the place of sale or service and the VAT due are known at the time of issuance.

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.