In this ruling, the CJEU clarified the VAT treatment of “virtual gold” sales in online gaming. The case concerned an online video game operator selling “virtual gold” to its users, a digital asset that could be used to acquire in-game advantages, items and features.
The operator put forward two alternative arguments:
- Virtual gold could be treated as a means of payment circulating within the game’s ecosystem, which would have brought it within the VAT exemption for financial transactions.
- Alternatively, it could qualify as a voucher giving access to digital goods or services within the game, triggering a specific tax treatment.
The Court rejected both. Virtual gold has no legal tender status and cannot be used outside the game, so it cannot be treated as a means of payment. Nor does it qualify as a voucher, since it does not entitle the holder to a clearly identified good or service. How it is used depends entirely on the player’s choices.
The Court concluded that the sale of virtual gold is an electronically supplied service, fully subject to VAT at the standard rate. A digital asset that exists solely within a gaming environment cannot benefit from any special tax treatment.
