On 5 March 2026, the Court of Justice ruled in Žaidimų valiuta (C-472/24) that exchanging real money for the virtual currency of an online video game is not exempt from VAT.
The case
A Lithuanian company bought and resold Gold, the virtual currency of the game Runescape, for traditional currencies. It had neither declared nor paid VAT. It relied on the bitcoin ruling in Hedqvist (C-264/14) and argued, in the alternative, that Gold was a multi-purpose voucher. In any event, it wanted to pay VAT only on the difference between its purchase price and its selling price.
The ruling
No exemption. Under Hedqvist, the exemption in Article 135(1)(e) of the VAT Directive can cover a non-traditional currency if two conditions are met: the parties accept it as an alternative to legal tender, and it has no purpose other than to be a means of payment. Gold has no use outside the game and is not accepted as payment for real goods or services. The game's terms also provide that it does not belong to the players.
No voucher. A voucher carries an obligation to accept it as consideration for a supply. Gold is different. It is itself the benefit the player consumes, an electronic service that forms part of the game, and not a way to obtain some later service.
Full price. VAT is due on the full consideration received for the sale under Article 73, not on the margin.
These findings are subject to verification by the Lithuanian body that referred the case.
What to check
- Traders in in-game currency should not rely on the bitcoin line. The question is whether the unit is accepted outside the game as a means of payment.
- Review your taxable amount. A business that has been reporting only its margin on such sales may be underpaying.
- Look at your terms of use. The Court took account of the fact that the virtual items do not belong to the players.
mr. J. el Khalfioui LL.M.