The EU's top court ruled that proceeds from trading virtual gold in online video games are subject to VAT, overturning any exemption. The decision supports Lithuania's efforts to collect tax on digital goods and has implications for VAT treatment of virtual goods across the EU.
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BTW Jurisprudentie · 5 months ago
The Court of Justice ruled that virtual currency used only within an online video game is not exempt under Article 135(1)(e) of the EU VAT Directive and is not a voucher under Article 30 bis. Consequently, such transactions are taxable electronic services, with VAT calculated on the full sale price. The decision clarifies that the exemption applies only to virtual currencies accepted as an alternative to legal tender and used solely as a payment instrument.
Bloomberg Tax · 7 months ago
On January 14, the Lithuanian State Tax Inspectorate released a summary explanation outlining VAT filing requirements for the small business regime. The guidance specifies that returns must be filed electronically via the online portal and due by the 25th of the month following the tax period in which VAT obligations arose or services were supplied in another EU member state. It also confirms that small business regime taxpayers in other EU member states must comply with the same electronic filing requirement.
VATIT · about 4 hours ago
In the EU, the distinction between a branch and a subsidiary determines whether intercompany services are subject to VAT. The FCE Bank decision of 2006 establishes that services supplied by a head office to its branch are outside the scope of VAT, while the Skandia and Danske Bank rulings show that VAT group membership can change this outcome.
Sni Technology · about 4 hours ago
Europe: SAP's Plants Abroad and RITA solutions let a single legal entity manage multiple VAT registrations across member states, simplifying reporting. The tools support tax code configuration, reporting by jurisdiction, and integration with ERP, but do not resolve tax determination or localisation requirements.
NWB Datenbank · about 7 hours ago
Germany: The Bundeszentralamt für Steuern has set a deadline of 18 December 2023 for Dutch taxpayers to submit electronic applications for the 2022 input tax refund period. Taxpayers may file a single application for the whole period or quarterly applications, but must withdraw any previously submitted applications.
Crowe · about 15 hours ago
In the UK, the Upper Tribunal ruled that Invisalign clear aligners are not dental prostheses for VAT exemption purposes. The decision means that these supplies are standard-rated and businesses must review their VAT position. HMRC may now review the VAT treatment of aligners across the sector.
Key Takeaways
It ruled that proceeds from trading virtual gold in online video games are subject to VAT, meaning the activity is not exempt.
A Lithuanian business whose virtual gold trading proceeds were subject to VAT.
It supports Lithuania's efforts to collect VAT on virtual gold trading by confirming the activity is taxable.
No, the ruling states that in-game gold trade is not exempt from VAT.
Primary source
Read the full article at Law360This summary was published on VATfaqs.com on 6 March 2026. It relates to VAT developments in Lithuania. The original source is Law360.
