- Commissionaire Status: The CJEU ruled that an app store can be treated as a VAT commissionaire under Article 28 of the VAT Directive, despite order confirmations identifying the app developer and showing German VAT. The court emphasized that the overall role of the app store, from the end-consumer’s perspective, is crucial in determining its status as an intermediary. This interpretation extends to transactions prior to 2015, clarifying that Article 9a of the EU VAT Implementing Regulation serves only as a clarification of existing rules rather than a new standard.
- Place of Supply: The court determined that the deemed supply from the developer to the app store falls under the ordinary place-of-supply rules established in the VAT Directive. Consequently, the place of supply for the developer’s services to the app store is where the app store is established, in this case, Ireland.
- No German VAT Liability: The ruling also stated that there is no German VAT liability for the developer, as the provisions aimed at preventing revenue loss from undue input VAT deduction (Article 203) do not apply when recipients are non-taxable persons. This reinforces that the mere identification of the developer in transaction confirmations does not negate the app store’s role as the deemed supplier.
Source PwC
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