European High Court Decides Bitcoin Should be Tax-Free
Today, the 22nd of October, The European Union’s top court ruled that Bitcoin and digital currencies should be exempt from sales taxes within the 28-country block. The European Court of Justice stated it saw no reason to treat Bitcoin differently transactions involving Fiat currency used as legal tender. The Court ruling was made clear following a complaint by a Swedish entrepreneur wanting to provide a service on a Bitcoin exchange which involved other traditional currencies. The Swedish entrepreneur wrote to the court arguing that the service should be tax-free.
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Bitcoin transactions will be exempt from Value Added Tax (VAT), the European Court of Justice (ECJ) has ruled. According to the Financial Times, the ECJ said that bitcoin transactions "are exempt from VAT under the provision concerning transactions relating to currency, bank notes and coins used as legal tender." The ECJ's long-awaited ruling comes after its Advocate General Juliane Kokott urged the court to refrain from applying tax to bitcoin purchases and sales, in an opinion document published in July. The European court first looked into bitcoin taxation in June last year after the....
Bitcoin should be exempt from VAT in Europe the EU's highest court, the European Court of Justice, ruled today. The court has been hearing a case for numerous months, and has only now come to its recommendation. The EU court stated, Bitcoin transactions "are exempt from VAT under the provision concerning transactions relating to currency, bank notes and coins used as legal tender." The case was between the Swedish Tax Authority and the nation's Revenue Law Commission. It commenced only after a Swedish citizen asked for clarification on the VAT on Bitcoin question. That national, David....
The European Union is to step in to determine the Value Added Tax treatment on the trading of cryptocurrencies, such as Bitcoin. Sweden has prompted the investigation, fearing its own initial tax pronouncement is being undermined by the UK's revised position issued in March this year. European Court of Justice to clarify VAT liability. Sweden has asked the European Court of Justice to give its opinion on whether exchanging Bitcoin for traditional sovereign currencies is liable to VAT. At the heart of this question is whether Bitcoin is a currency (which is exempt from VAT) or a form of....
In what can only be regarded as good news for Bitcoin, the European Court of Justice (ECJ) Thursday ruled that exchanging bitcoin should not be subject to VAT (Value Added Tax). The verdict, which is the climax of an Swedish court dispute that started back in 2012, applies to all 28 E. U. member states. VAT-law is complicated, however, and some reports on the verdict have been confusing so far. Hopefully, the answers to the six questions below will help make sense of this ruling. Does the ECJ decision mean that exchanging bitcoin falls outside of the scope of VAT? Actually, no. Any dealing....
Professing that the Bitcoin is a form of money, the Advocate General of the European Court of Justice (ECJ), Juliane Kokott, said that the digital currency should be exempt from Value Added Tax (VAT). The proposal came in response to the Swedish tax office's request to defog the tax status of Bitcoin in Europe, and end all the legal uncertainties that surrounds it in the current regulatory climate. At that time, the Swedish authority had challenged a court decision that had excused Bitcoin transactions from Bitcoin operations from falling under the VAT's purview. The EU's highest court,....