A Legal Perspective of the European Court Ruling Exempting Bitcoin from VAT Tax
Business Law Magazine, a German publication, reviewed a European Court of Justice ruling exempting bitcoin from value added tax (VAT) which was hailed as a victory by bitcoin advocates. The article by attorney Heinz Zimmermann noted that bitcoin has seldom been the focus of analyses addressing taxes. In presenting the court’s decision, the article reviewed the history and workings of bitcoin. The case was between the Swedish Tax Authority and the nation’s Revenue Law Commission. It commenced after a Swedish citizen asked for clarification of VAT on bitcoin, CCN reported. That national,....
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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.
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 most popular Swedish news site, Dn.se, has reported the European Court of Justice as stating, “Bitcoin is a means of payment and that the exchange should therefore be exempted VAT obligations.” Three years ago, Swedish software developer David Hedqvist and moderator of Bitcoin.se asked the European Union if Bitcoin transactions are exempt from VAT. According to the findings of the court: However, the Swedish Tax Agency argued against the Board of EU directives, and said that they have mistakenly interpreted the matter. The Agency appealed to the Supreme Administrative Court and urged....
Earlier this week, the European Court of Justice decided to exempt bitcoin transactions from Value Added Tax (VAT). In so doing, the court effectively recognized bitcoin as a legitimate means of payment in Europe, putting it in the same realm as other currencies for tax purposes. The ruling comes months after court advocate general Juliane Kokott said the court should refrain from applying tax to bitcoin sales and purchases in an opinion published in July. Europe's highest law court first began looking into bitcoin taxation in June last year after the Swedish tax office challenged a court....