On October 22, 2015, the European Court of Justice ruled that Bitcoin is a means of payment and its exchange is exempt from VAT in a landmark ruling. But a few people understand the implications of this decision. That’s why CoinTelegraph decided to ask for comment an experienced bitcoin lawyer. Our expert is Stefano Capaccioli. Stefano Capaccioli is CPA, Auditor, Tax litigator, Tax Advisor, Business Consultant, Specialized in Law & Tax on Gold, Precious Metals and Cryptocurrencies gives a professional Comment to Court Of Justice Judgement C-264/14 on bitcoinCT r: 4 VAT exemption. A Comment to Court Of Justice Judgment C-264/14 on bitcoin VAT exemption The European Court of Justice gave Judgment C-264/14 on the VAT treatment of bitcoin and virtual currencies, interpreting Article 135 (1) of Directive 112/2006/EC, and in particular the letters d), e) and f). The Judgment C-264/14 declared that bitcoin and cryptocurrencies are VAT exempt as currency , although not legal tender. This Judgment constitutes an authentic interpretation of the VAT Directive 2006/112/EC and it is applicable in all 28 Member States, harmonizing the VAT treatment of bitcoin and constitutes the first official legal document in the European Union. The Decision is of historic importance: it clarifies all doubts and removes the confusion on the applicability of consumption taxes to bitcoin, considering cryptocurrencies as a simple means of payment and, under a VAT perspective, similar to a foreign currency. Some of the European Union Member States’ Tax Authorities issued their own ruling: the resulting situation was quite confusing because of the dissimilar interpretations, and in particular: Sweden: the promoter of the preliminary ruling (Case No. 7101-13), had their Tax Authority indicate that bitcoin was exempt as other currencies under Article 135 (1) letter e). United Kingdom: the Tax Agency of the United Kingdom (Her Majesty’s […]
