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Bitcoin Exempt From VAT
Friday October 23,2015 : GOOD NEW FOR BITCOIN PUNTERS
European Court of Justice ruling says virtual currency is exempt from VAT in Europe.
Online punters and other users of the virtual currency Bitcoin will be pleased to hear that the European Court of Justice has ruled that Bitcoin is to be treated in Europe in the same way as traditional fiat currencies, and is exempted from value added tax.
The Court found this week that cyber-currency transactions buying and selling Bitcoin are no different to those involving other accepted legal tender, and that in terms of European Union law such transactions are exempt from VAT across the 28-nation Union.
The case was considered by the Court at the request of Swedish authorities following the Hedqvist case, in which an internet forum moderator applied to offer Bitcoin transactions on his website, but disputed the government's claim that VAT be levied.
Speaking to Bloomberg business news after the ruling, Hedqvist observed that the Court's decision was important for European businesses in general to have clarity regarding VAT.
As news of the court's recognition of Bitcoin as a pure payment method became more widely known, the value of the cyber currency spiked significantly to $280.
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