EU Rules Bitcoin is Exempt from VAT

EU Rules Bitcoin is Exempt from VAT

The recent situation in EU on VAT

 

Until last week there were still different opinions within EU countries whether Bitcoin is exempt from VAT or not. Some countries already came to the same conclusion a long time ago, some kept fighting against it until the end. The ruling in question came from the court case between Skatteverket (Swedish tax authority) and David Hedqvist (a Swedish national and entrepreneur wanting to start a Bitcoin exchange).  Mr Hedqvist requested a preliminary decision from the Swedish Revenue Law Commission in order to establish whether VAT must be paid. According to that commission, Bitcoin is a means of payment and must, consequently, be exempt from VAT. The Swedish tax authority Skatteverket appealed this decision and the final decision was made in Luxembourg by The Court of Justice of the European Union on October the 22nd.