New Clarification Issued on Crypto Currency
July 17, 2015 International Tax Cooperation
LUXEMBOURG – Users and operators using crypto-currencies have received new tax clarification regarding the sale and purchase of such currencies.
The sale and purchase of Bitcoins and other forms of crypto-currency should be exempt from VAT, according to new information detailed in an opinion document issued on July 16th by the European Union’s Court of Justice Advocate.
The matter was first raised several years ago, after an individual requested clarification from the tax authorities of Sweden regarding the tax implications of the sale and purchase of crypto-currency.
The issue caused controversy between the courts of Sweden and the tax authorities, with the question being raised to a pan-European level.
According to the new information, transactions of crypto-currency should not be levied with VAT, as actual purchases using such currency are already charged VAT, and a lack of exemption would result in double taxation.
The decision was based on current presidents, as the UK, Belgium and Spain have already independently decided that such currency should be exempt.
Photo By: BTC Keychain