Europe: Bitcoin exchange VAT-free

On the exchange of the virtual currency Bitcoin falls after an EU ruling no VAT. In this regard, the crypto-currency is to be treated as other means of payment, the European Court of Justice (ECJ) (C-264 Case / 14) decided on Thursday in Luxembourg.

Background of the decision is a case from Sweden. A man wanted there to offer the conversion of conventional currencies in Bitcoins and vice versa. That’s why he wanted to know from the Commission competent in Sweden, whether VAT is payable on the purchase and sale. The Commission said yes because Bitcoins would be used as legal tender – sales of the latter are exempt in the EU from VAT. The tax authorities thought otherwise and went before the Supreme Administrative Court of the country. This begged the top European judges to help in the interpretation of EU law.

Bitcoin users can look forward to over the verdict. It strengthens the virtual currency. Fall upon the conversion of Bitcoins in future a tax on, they would be quite unattractive for payments. For any exchange Bitcoin users would then have to pay more. In order that the currency would not be competitive with conventional money. Sales of cash in the European Union are exempted from VAT in general. Anyone planning a holiday in the US, although likely to look sadly at the exchange rates for some time. An additional tax is not applicable for the conversion of Euros into US dollars. Both currencies are, in spite of all crises, recognized and popular means of payment.

Facebooktwittergoogle_plusredditmailby feather

Leave a Reply