08:14 GMT +321 October 2019
Listen Live
    Bitcoin coins photo

    Top EU Court Declares Virtual Currency Exchanges VAT-Free

    © Flickr / Antana
    World
    Get short URL
    0 34
    Subscribe

    The highest EU court ruled Thursday that virtual currencies, such as Bitcoin, can be exchanged for traditional currencies across the European Union without incurring consumption taxes, according to the court’s statement.

    MOSCOW (Sputnik) The European Court of Justice decided that transactions should be exempt from value added tax (VAT) under the provision concerning transactions related to "currency, bank notes and coins used as legal tender."

    The judgment came in response to a case prompted by a Swedish national seeking guidance from the Swedish tax authority, before opening an online Bitcoin exchange business. The tax authority argued that virtual currencies should be subject to consumption taxes.

    Bitcoin is one of the most popular cryptocurrencies or peer-to-peer payment systems, which have no material form and allow users to make payments for good and services online.

    Related:

    Bitcoin ATMs to Hit Greece as Trust in Banks Disappears
    Liberland: Country of Bitcoin, Utopian Tax-Free Haven
    Kremlin: Putin's Comment Regarding Bitcoins Should Not Be Taken as Approval
    Tags:
    tax, European Union, European Court, Bitcoin
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik