European Court of Justice Issues Preliminary Ruling on German VAT Rules for Vouchers

The European Court of Justice (ECJ) April 18 issued a preliminary ruling for Case No. C-68/23, concerning the classification and liability for VAT in the marketing of specific prepaid cards or voucher codes. The taxpayer, a German non-trading company, marketed prepaid cards and vouchers, which were available for the purchase of digital content on the taxpayer’s online shop. The German tax authorities subjected the taxpayer to a provisional VAT installment because they determined that the prepaid cards constituted a single-purpose voucher since they could only be used by specific customers domiciled in Germany. Upon request for a preliminary ruling from ...