The development of the digital economy is giving rise to increasing uncertainty regarding the VAT treatment of transactions involving virtual assets. One such issue concerned the possibility of applying a VAT exemption to the sale of a currency used exclusively within a computer game.
The case involved an entrepreneur conducting business activity taxed under the lump-sum regime on recorded revenues, consisting of trading in a virtual currency used in a computer game. The applicant acquired the e-currency from third parties, other players, or through tokens purchased on a decentralized cryptocurrency exchange, which could then be exchanged within the game system. The acquired e-currency was subsequently resold to other game users for consideration.
The applicant emphasized that he did not create the e-currency himself but merely purchased and resold it in an unchanged form. The e-currency functioned as a means of payment exclusively within the game, enabling the purchase of virtual items and upgrades, although it could also be traded for money. The sales were conducted entirely remotely, and the transfer of the e-currency took place after payment had been received.
The applicant sought confirmation as to whether his activity consisting of selling e-currency used in a computer game could benefit from the VAT exemption.
In the applicant’s view, the sale of the e-currency constituted a supply of services for consideration subject to VAT, but it should be exempt under Article 43(1)(7) of the Polish VAT Act. He argued that his activity consisted solely of purchasing e-currency from other entities and reselling it, and that there was a direct link between the service provided and the remuneration received. He also pointed out that the e-currency served as a means of payment within the game, allowed users to acquire virtual items, and could be traded between users. Consequently, he believed that transactions involving its sale should benefit from the VAT exemption applicable to currency transactions.
The Director of the National Tax Information did not agree with this position. The authority confirmed that the sale of e-currency constitutes a supply of services for consideration subject to VAT, but concluded that such transactions do not qualify for the exemption provided for in Article 43(1)(7) of the VAT Act.
Referring to the case law of the Court of Justice of the European Union, the authority noted that, according to the judgment in Hedqvist (C‑264/14), the VAT exemption may also apply to non-traditional currencies if they are accepted as an alternative means of payment and their sole purpose is to function as a means of payment. However, the Director of the National Tax Information also relied on the more recent CJEU judgment of 5 March 2026 in case C‑472/24, according to which a currency used exclusively within a computer game and not functioning as a means of payment in general economic transactions does not meet these conditions and therefore does not qualify for the VAT exemption.
Consequently, the authority concluded that the e-currency described by the applicant, used exclusively within a computer game, cannot be regarded as a currency covered by the exemption. The decisive factor was that outside the game environment it is not an accepted means of payment for acquiring real goods or services, and its function is limited solely to use within the game. As a result, the Director of the National Tax Information held that the sale of the e-currency does not satisfy the conditions for VAT exemption and should be taxed at the applicable VAT rate, provided that the place of supply is Poland.
The interpretation confirms that the sale of e-currency used exclusively in a computer game constitutes a taxable supply of services. At the same time, merely functioning as a means of payment within a game is not sufficient to apply the VAT exemption for currency transactions if the e-currency does not operate as a means of payment in economic transactions outside the game environment.