Bitcoin and the VAT exemption for financial transactions
In Skatteverket v David Hedqvist (C-264/14) (22 October 2015) the CJEU held that the purchase and sale of bitcoin units were exempt transactions.
Mr Hedqvist wished to provide through a company services consisting of the exchange of traditional currency for the ‘bitcoin’ virtual currency and vice versa. These transactions were to be carried out electronically via the company’s website. The company would purchase units of the bitcoin virtual currency directly from private individuals and companies or from an international exchange site. The company would then resell the units or store them.
The issue was whether the purchase and sale of units was exempt from VAT under the Principal Directive Art 135(1). The CJEU first confirmed that units are intangible so that the company would be providing services. Furthermore those services would be provided for consideration...
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Bitcoin and the VAT exemption for financial transactions
In Skatteverket v David Hedqvist (C-264/14) (22 October 2015) the CJEU held that the purchase and sale of bitcoin units were exempt transactions.
Mr Hedqvist wished to provide through a company services consisting of the exchange of traditional currency for the ‘bitcoin’ virtual currency and vice versa. These transactions were to be carried out electronically via the company’s website. The company would purchase units of the bitcoin virtual currency directly from private individuals and companies or from an international exchange site. The company would then resell the units or store them.
The issue was whether the purchase and sale of units was exempt from VAT under the Principal Directive Art 135(1). The CJEU first confirmed that units are intangible so that the company would be providing services. Furthermore those services would be provided for consideration...
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