coinfox.info / Aliona Chapel / 18 July 2015
Bitcoin to other currencies exchange transactions are exempt from the EU value-added tax regulations, Reuters reported Advocate General Juliane Kokott’s words.
The European Court of Justice is still analysing the case filed by Sweden on the tax status of bitcoin. The Luxembourg-based tribunal is examining a dispute between Sweden’s tax authority (Skatterverket) and David Hedqvist, a web forum moderator who planned to start selling bitcoins on his website. The request was filed to the European Court on 2 June 2015 and the preliminary hearing was held this week.
The court is reviewing two questions about the current EU legislation regarding tax: whether the transactions between virtual currency and fiat can be classified as a service and, if yes, whether it means that these transactions are tax-exempt.