European Court of Justice Issues Preliminary Ruling on VAT Rules for Online Services

The European Court of Justice (ECJ) Oct. 9 issued a preliminary ruling in Case No. C-101/24, on the place of supply rules for determining VAT on online services. The taxpayer, a German company, sold games for mobile devices through an online store operated by an Irish company from 2012 to 2014. The German tax authorities found that the taxpayer was liable for VAT as the actual supplier to end users. Upon request for a preliminary ruling, the ECJ held in part that Directive 2006/112/EC on the common system of VAT must be interpreted as meaning that if a taxable person ...