Analysis: “Clarifying the VAT treatment of city cards” (Case C-637/20, Skatteverket v DSAB Destination Stockholm AB) by Heidi Suorsa and Sam van der Vlugt

In its ruling in Skatteverket v DSAB Destination Stockholm AB (C-637/20), the Court of Justice has provided clarity on the VAT treatment of city cards within the meaning of Directive 2006/112/EC (VAT Directive). The case is the product of a debate on the definition of a ‘voucher’ under Article 30a of the VAT Directive, and more specifically whether city cards fall within that definition. The city card in question gives access to various sights, tours and museums as well as transportation services such as buses and boats in the city of Stockholm, Sweden, which are subject to VAT rates ranging from 6% to 25% or are exempt from VAT. The suppliers of the services receive a certain percentage of the normal cost of th