German Court Clarifies VAT Rules for Single-Use Digital Vouchers in 2025 Ruling

• The German Federal Fiscal Court (BFH) clarified that vouchers for digital content redeemable only by German consumers are single-purpose vouchers for VAT purposes.
• The decisive factor is whether the place of supply and VAT rate are known at the time of voucher issuance, not the involvement of intermediaries in other EU Member States.
• VAT is due at the time of sale for single-purpose vouchers, not upon redemption.
• The BFH’s decision aligns with a 2024 European Court of Justice (ECJ) ruling and provides clarity for digital voucher businesses.
• The classification of vouchers depends on the certainty of place of supply and VAT rate at issuance, not on the distribution chain.

Source: meridianglobalservices.com

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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