CJEU, Case C-101/24, 9 October 2025
With the growth of digital platforms, the question of who is actually supplying electronic services, and therefore who is liable for VAT, is increasingly important. The CJEU’s judgment in Xyrality GmbH (9 October 2025) provides useful clarification.
In this case, a German company distributed mobile gaming apps via an Irish platform. Users could purchase additional features directly on the platform, which initially displayed only its own branding. The order confirmation sent to users later mentioned the German company.
The German company initially declared and paid German VAT, but subsequently argued that the Irish platform was in fact the supplier to the end user and therefore the person liable for VAT.
The Court agreed, finding that the platform acted in its own name towards the end user and was therefore deemed to have supplied the services itself.
The CJEU confirmed this reasoning: even if the user receives a subsequent confirmation mentioning the original supplier, the platform is still considered the provider of the services.
For businesses selling electronic services through platforms, it is essential to determine whether the platform acts as a “non-transparent” (deemed supplier) or transparent intermediary, as this distinction directly affects VAT liability and reporting.
