In Skatteverket v David Hedqvist (C-264/14) (16 July 2015) the Advocate General opined that exchange transactions involving bitcoin should be exempt from VAT.
Mr Hedqvist intended to carry out an online business of currency exchange solely between bitcoin and Swedish krona and the issue was the treatment of transactions involving the exchange of bitcoin currency for conventional currency. Bitcoins can only be used electronically and are created by an internet algorithm.
The AG considered firstly that bitcoins were simply a means of payment and as such their transfer did not trigger any liability to VAT.
However as Mr Hedqvist intended to charge a commission for his services the tax treatment of his services fell to be determined. The AG considered that these services did not fall within the scope of the Principal VAT Directive Art 135(1)(f) (which essentially relates to shares and bonds)...
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In Skatteverket v David Hedqvist (C-264/14) (16 July 2015) the Advocate General opined that exchange transactions involving bitcoin should be exempt from VAT.
Mr Hedqvist intended to carry out an online business of currency exchange solely between bitcoin and Swedish krona and the issue was the treatment of transactions involving the exchange of bitcoin currency for conventional currency. Bitcoins can only be used electronically and are created by an internet algorithm.
The AG considered firstly that bitcoins were simply a means of payment and as such their transfer did not trigger any liability to VAT.
However as Mr Hedqvist intended to charge a commission for his services the tax treatment of his services fell to be determined. The AG considered that these services did not fall within the scope of the Principal VAT Directive Art 135(1)(f) (which essentially relates to shares and bonds)...
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