- The EU Court of Justice ruled that exchanging real currency for virtual currency used exclusively in online video games is not exempt from VAT.
- Virtual currency used only within a video game does not qualify as a “voucher,” so VAT must be collected on the full amount received.
- A Lithuanian company selling in-game currency (“gold”) for real money was required to pay VAT, plus penalties and interest, after a tax audit.
- The Lithuanian court questioned whether such transactions are VAT-exempt and what the taxable amount should be, but the EU Court clarified that VAT applies to the total consideration received.
Source: fiscooggi.it
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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