EU: CJEU confirms sale of in-game “gold” subject to VAT

Clarifying VAT treatment of in-game currencies

The Court of Justice of the European Union (CJEU) on March 3, 2026, published its judgment in case C‑472/24, clarifying the value added tax (VAT) treatment of in-game currencies, broadly following its Advocate General Opinion in September 2025. Read TaxNewsFlash

Facts

The taxpayer engaged in virtual gold trading by purchasing and selling in-game gold from an online computer game. The Lithuanian tax authority found that the taxpayer earned significant income from reselling in-game gold at a higher price, exceeding the Lithuanian VAT registration threshold. Consequently, the tax authority assessed VAT totaling €46,688 for the years 2021, 2022, and 2023. The taxpayer contested the tax authority's decision, claiming that the income from in-game gold sales should be exempt from VAT as it constituted trading in virtual currencies. Alternatively, the applicant argued that in-game gold should be considered a multi-purpose voucher, which is not subject to VAT. Furthermore, the applicant asserted that the taxable value for VAT purposes should be the margin between the purchase and selling prices, as no separate commission fee was charged for the sale of in-game gold.

Questions before the CJEU

Does the sale of in-game gold fall within the scope of the financial services exemption in Article 135(1)(e) of the EU VAT Directive?
If the answer to the first question is in the negative, what should be the taxable value of in-game gold according to the provisions of the VAT Directive: the total consideration for the sale of in-game gold or only the difference between the purchase price and the selling price, when the trader does not charge a separate commission for the transfer of in-game gold?

CJEU decision

First question

Article 135(1)(e) of the EU VAT Directive exempts transactions involving legal tender, including negotiation. According to the CJEU case law (e.g., Hedqvist, Case C‑264/14 (October 22, 2015)), Advocate General, for in-game gold to qualify for this exemption, it would need to be considered legal tender, which it is not. The CJEU previously extended in the Hedqvist case, a non-traditional currency can qualify only if (1) the parties accept it as an alternative to legal tender and (2) it serves no purpose other than as a means of payment. In this respect, the CJEU observes that the in-game gold in the case at hand has no purpose other than to be used within an online video game and that it does not therefore constitute a currency accepted outside that game as a means of payment to obtain real goods or services. In addition, that finding appears to be supported by the fact that the conditions of use of that game provide, in essence, that the products linked to that game, including “gold,” do not belong to the players. Therefore, the CJEU held that the in-game gold does not fall within the VAT exemption of Article 135(1)(e) of the EU VAT Directive.

Second question

The CJEU interprets this question as to whether in-game gold qualifies as a multiple purpose voucher under Article 30a(3) of the EU VAT Directive to determine the correct VAT taxable amount. Article 30a(1) requires two conditions for an instrument to qualify as a voucher: (1) the seller must have an obligation to accept it as payment (full or partial) for goods or services, and (2) the instrument or related documentation must identify what the buyer can obtain (or the potential seller). According to the CJEU, even if the in-game gold in the case at hand met the second condition, it did not meet the first because it functioned as an integral part of the online game—meaning the buyer directly consumed “gold” as the e-service itself rather than using it as a payment tool to obtain a later, separate product or service. As a result, “gold” did not qualify as a voucher (and therefore not as a multi-purpose voucher), and VAT applies to the full amount paid for “gold” under the general rule in Article 73 (i.e., the taxable amount equals the total consideration received).

KPMG observation

The decision indicates that each sale and resale of in-game “gold” can trigger VAT because the Court classified “gold” as an e-service subject to VAT. This outcome can create VAT “cascading” (VAT effectively building up in the price) when non-taxable persons participate in a resale chain, because those persons cannot recover input VAT through the VAT system. For example: (1) the game operator sells “gold” to an individual and charges VAT, which becomes a final cost for that individual; (2) the individual resells the “gold” to a “gold merchant” and typically does not charge VAT if the individual does not act as a taxable person (that is, the individual does not carry out an ongoing business activity), but the original VAT cost will likely remain embedded in the resale price; and (3) the “gold merchant” resells the “gold” and must charge VAT again, which can lead to VAT being charged on a price that already includes unrecovered VAT from the earlier step. The AG addressed this point suggesting that potentially the margin scheme applicable to goods may also be applicable to situations such as in the case at hand. The CJEU, however, did not address this point.

More broadly, the case raises practical VAT questions in several areas:

For cryptoassets, the CJEU’s two-part test for VAT exemption under Article 135(1)(e) (acceptance as an alternative to legal tender and no purpose other than as a means of payment) may not always fit tokens commonly described as “cryptocurrencies,” particularly when the token has functions beyond payment (for example, platform utility or governance) or when acceptance as a payment method remains limited; however, even if the exemption does not apply, that does not automatically mean the token becomes an e-service—its VAT treatment can differ depending on its legal and economic characteristics.
For in-game transactions, because the CJEU did not treat “gold” as a voucher, tax authorities may argue that exchanging “gold” for in-game items (such as skins or experiences) amounts to a barter arrangement—an exchange of one e-service for another—potentially resulting in two taxable transactions and difficult valuation questions (for example, how to determine the taxable amount when the in-game currency value fluctuates).
For marketplaces and platforms, if a platform facilitates taxable sales of in-game “gold,” the platform may become responsible for collecting and remitting VAT under the “deemed supplier” mechanisms (Article 28 of the EU VAT Directive and Article 9a of the VAT Implementing Regulation), and the VAT outcome can depend on who sells and who buys (for example, an occasional individual seller versus a professional “gold merchant”) and their respective location.

Potentially impacted businesses need to take practical steps now to reduce VAT risk, avoid double taxation in their pricing, and prepare for audit questions, including:

Map and classify transactions: Inventory all in-game currency and digital item flows and confirm whether each one qualifies as a taxable e-service (or another category).
Update VAT logic and taxable amount methods: Configure systems to charge VAT when required and document how you will value in-game currency exchanges (including potential barter scenarios).
Confirm customer/seller status: Implement controls to distinguish business vs. consumer customers and occasional sellers vs. professional traders.
Assess marketplace/platform VAT liability: Determine whether platform rules make you responsible for collecting and remitting VAT, and update contracts and checkout accordingly.

For more information, contact a KPMG tax professional:

Philippe Stephanny | philippestephanny@kpmg.com

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EU: CJEU confirms sale of in-game “gold” subject to VAT

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