ECJ Case: Advocate general opinion on VAT liability for online mobile app sales
The Advocate General of the European Court of Justice (ECJ) issued an opinion in Case C-101/24 concerning the determination of VAT liability for digital services sold via online platforms.
The case involves a German company that distributed mobile games through an online store managed by an Irish platform between 2012 and 2014. The German tax authority assessed that the company was liable for VAT, treating it as the actual supplier to consumers.
In response to a request for a preliminary ruling, the Advocate General interpreted Directive 2006/112/EC on the common VAT system as follows:
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The rules applied to the sale of mobile applications via digital platforms before January 1, 2015. In these cases, the platform operator is considered to receive the services from the developer and then supply them to the final consumers.
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However, if the seller (in this case, the German company) is identified as the supplier and VAT is explicitly shown in confirmations sent to private consumers, then the seller—not the platform—is responsible for the VAT.
This opinion provides clarification on how VAT should be determined in cases involving intermediary platforms and digital services before the 2015 rule change.
Source: europa.eu
