In its judgment of 5 March 2026 (C‑472/24), the ECJ decided on how trading in in-game assets against conventional currencies should be treated for VAT purposes: The VAT exemption for transactions involving means of payment does not apply, nor is the trade to be treated as a transfer of a (multi-purpose) voucher. The decision affects not only gaming platforms and professional traders, but also marketplaces, developers, and investors in the sector of digital goods. Particularly relevant is the rejection of VAT exemption and margin scheme.

Since its inception in 2009, the German requirement to apportion supplies of accommodation services (eg, hotel accommodation with breakfast) has been heavily criticised: it is said to be purely politically motivated (“Mövenpick tax”) and to violate the principle that the supply of an ancillary service (eg, breakfast) shares, from a VAT perspective, the fate of the main supply (accommodation). The European Court of Justice (ECJ) now brings clarity to all of the controversial discussions, and rules that the apportionment requirement is in accordance with Union law.

The German Federal Court of Justice (BGH) recently ruled that monthly/quarterly VAT returns and the annual VAT return are separate procedural acts. This change in the BGH’s jurisprudence has practical implications for VAT compliance, including the VAT reporting process, corrections, and the documentation of the VAT return preparation process. Amendments to correct errors that become apparent later should no longer be made in the annual VAT return or in the monthly VAT return for December. Instead, each incorrect monthly/quarterly VAT return should be amended immediately. Internal control systems on the level of each monthly/quarterly VAT return or even on a transactional basis becomes more important.