Virtual gold, real VAT: what the new EU ruling means for in-game currency

In-game coins, gold, credits and tokens can represent significant economic value. They are not only used within games but are also bought and sold for real money.

This raises an important tax question: should transactions involving in-game currency be treated in the same way as transactions involving bitcoin or other virtual currencies?

In its judgment of 5 March 2026 in Žaidimų valiuta (C-472/24), the Court of Justice of the European Union provided a clear answer: in-game currency that can only be used within a particular online video game is not currency for VAT purposes. It constitutes an electronically supplied service.

This distinction has important consequences for gaming companies, professional traders, platforms and private gamers.

What was the case about?

The case concerned a company that purchased virtual gold used in the online video game RuneScape and subsequently resold it in exchange for traditional currency.

The company argued that these transactions should be exempt from VAT, as may be the case for bitcoin and certain other virtual currencies.

Alternatively, it argued that the in-game gold should be treated as a voucher. Under that qualification, the full selling price would not necessarily have been subject to VAT.

The Court rejected both arguments.

In-game currency is not VAT-exempt currency

The EU VAT Directive provides an exemption for transactions concerning currencies, banknotes and coins used as legal tender.

Under certain conditions, the exemption may also apply to non-traditional currencies. This requires that the currency: (a) is accepted by the parties as an alternative to legal tender; and (b) has no purpose other than to be used as a means of payment.

Bitcoin may, in certain circumstances, meet those conditions. In-game currency generally does not.

It can usually only be used within a specific game and is not generally accepted outside that environment as payment for real goods or services. The Court therefore held that it does not qualify for the VAT exemption applicable to currency transactions.

The commercial label used — such as “currency”, “gold” or “coins” — is irrelevant. For VAT purposes, the actual function of the token is decisive.

Nor is it a voucher

At first sight, in-game currency may resemble a gift card or voucher: the player first purchases the coins and later uses them within the game. The Court nevertheless held that the coins are not vouchers.

A voucher gives its holder the right to obtain goods or services at a later stage. In-game currency, by contrast, is itself part of the digital benefit received by the player.

It forms an integral part of the game and gives access to functions, features or advantages within that gaming environment. The coins are therefore not merely a payment instrument for a future supply. They are themselves part of the electronically supplied service.

VAT on the full selling price

The most important financial consequence follows directly from this classification.

A business that purchases in-game currency and subsequently resells it in its own name supplies an electronically supplied service. VAT is therefore calculated on the full selling price, not merely on the margin between the purchase price and the resale price.

Example

A trader purchases in-game currency for EUR 800 and resells it for EUR 1,000.

The taxable amount is not limited to the EUR 200 margin. In principle, the full selling price is subject to VAT. Where the EUR 1,000 selling price includes Belgian VAT at 21%, the figures are approximately: taxable turnover: EUR 826.45; VAT due: EUR 173.55; gross commercial margin before other costs: EUR 26.45.

A business model that appears profitable when only the difference between the purchase and selling price is considered may therefore become significantly less attractive once VAT is correctly taken into account.

Reseller or genuine intermediary?

The term “broker” is often used in practice, but it may cover different business models. For VAT purposes, the actual contractual and economic role of the business must be examined.

The business purchases and resells the currency itself

Where a business purchases the in-game currency and subsequently resells it to players in its own name, it is acting as a reseller rather than as a genuine intermediary.

In that case: the business itself supplies the electronically supplied service; it receives the full selling price; the full selling price is, in principle, subject to VAT.

This was the business model examined by the Court.

The business acts only as an intermediary

The position is different where a platform or broker merely brings a buyer and seller together and receives a separate commission for doing so.

In that case, the intermediary’s own supply will generally consist of an intermediation or platform service. Its taxable consideration will normally be limited to the commission, rather than the full value of the in-game currency traded.

That commission will nevertheless generally be subject to VAT. The exemption for intermediation in currency transactions cannot apply where the underlying in-game currency itself does not qualify as exempt currency.

The contracts, invoicing arrangements and payment flows must support that distinction. A business that economically acts as the seller cannot avoid VAT on the full selling price merely by describing itself as a “broker” or “platform”.

What does this mean for private gamers?

For a private gamer purchasing in-game currency, the principal consequence is straightforward: the gamer bears the VAT as the final consumer.

For a sale to a Belgian private gamer, Belgian VAT will normally be included in the consumer price.
Where a gamer pays EUR 100 including 21% VAT, that amount consists of approximately: EUR 82.64 net consideration for the seller; EUR 17.36 VAT.

The gamer cannot recover that VAT. 

Which VAT rate applies to foreign players?

Because the sale of in-game currency qualifies as an electronically supplied service, sales to private individuals are generally taxed in the country where the player resides.

A Belgian seller may therefore have to charge: Belgian VAT to Belgian players; Dutch VAT to Dutch players; French VAT to French players; the applicable local VAT rate to players residing in other EU Member States.

The seller can generally report and pay that foreign VAT through the EU One Stop Shop scheme.

The business must therefore collect sufficient evidence to determine the customer’s place of residence.

Must a private gamer charge VAT when selling coins?

Not necessarily. A gamer who occasionally sells coins from a personal game account will generally not be acting as a VAT taxable person. An isolated private sale will normally not trigger: VAT registration; VAT invoicing; periodic VAT returns.

The position changes where the activity becomes organised and continuous.

A person who systematically purchases coins for resale, carries out transactions on a regular basis, actively seeks customers or pursues profits in a structured manner may be regarded as carrying on an economic activity for VAT purposes.

In that case, the person may become liable for VAT on the full selling price, even if they still describe themselves as a private gamer. The tax authorities will consider the actual nature of the activity, rather than the label attached to it.Niet noodzakelijk. 

What about personal income tax?

The VAT treatment is separate from the income tax treatment. Even where a gamer is not a VAT taxable person, a profit may still be taxable for personal income tax purposes, depending on the circumstances.

Relevant factors may include:
- the frequency of transactions;
- the scale of the activity;
- the level of organisation and professionalisation;
- the speculative nature of the transactions;
- whether the activity goes beyond the normal management of private assets.

An occasional private sale and an organised trade in in-game currency may therefore receive very different tax treatment.

Practical points for businesses 

Businesses selling or trading in-game currency should at least determine:

1. Who legally sells the currency to the player?
2. Is the currency purchased and resold in the business’s own name?
3. Does the business receive the full selling price or only a commission?
4. Are the advertised prices VAT-inclusive or VAT-exclusive?
5. Where are the private customers located?
6. Must foreign VAT be reported through the One Stop Shop?
7. Do the contracts, invoicing and accounting records reflect the actual business model?
8. Does the commercial margin remain sufficient when VAT is calculated on the full selling price?

Conclusion

The judgment removes an important area of uncertainty.

In-game currency that can only be used within a particular online video game is, for VAT purposes: not traditional or virtual currency; not a voucher; but an electronically supplied service.

A business purchasing and reselling that currency in its own name is therefore generally liable for VAT on the full selling price, rather than only on its trading margin.

A genuine intermediary will generally be taxed only on its commission, although that service will normally also be subject to VAT.

For private gamers, VAT will usually be included in the purchase price. A gamer who occasionally sells personal in-game currency will not normally have VAT obligations, whereas a person trading in a structured and continuous manner may qualify as a VAT taxable person and may not forget personal income tax.

Virtual gold can therefore produce very real tax consequences.

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