Bitcoin to other currencies exchange transactions are exempt from the EU value-added tax regulations, Reuters reported Advocate General Juliane Kokott’s words. 

The European Court of Justice is still analysing the case filed by Sweden on the tax status of bitcoin. The Luxembourg-based tribunal is examining a dispute between Sweden’s tax authority (Skatterverket) and David Hedqvist, a web forum moderator who planned to start selling bitcoins on his website. The request was filed to the European Court on 2 June 2015 and the preliminary hearing was held this week. 

The court is reviewing two questions about the current EU legislation regarding tax: whether the transactions between virtual currency and fiat can be classified as a service and, if yes, whether it means that these transactions are tax-exempt.

Earlier, CoinFox wrote about a tension on the tax matter between a Swedish bitcoin exchange and Skatterverket. In March, the Swedish tax agency requested a Stockholm-based exchange BTCX to disclose information about their customers' transactions. BTCX regarded this request as intrusive and took the Skatterverket to the Administrative Court. 

Last month, the Swiss Federal Tax authority confirmed that there is no VAT on bitcoin in Switzerland. In response to a formal enquiry made by three Swiss bitcoin organisations in February 2014 the authority stated that no VAT applies to companies that sell bitcoin.

The status of bitcoin with regards to taxation differs from country to country. Bitcoin is VAT-exempt in Finland, Belgium and the United Kingdom. In Australia, bitcoin is classified as property and, therefore, bitcoin transactions are taxed.


Aliona Chapel